.pdf · SESSION NO. 44 Tuesday to Friday and Monday November 2 1 to 24 and 27.2006 CALL TO ORDER At...

REPUBLIC OF THE PHILIPPINES

S e n a t e Pasay City

Journal

SESSION NO. 44 Tuesday to Friday and Monday

November 21 to 24 and 27.2006

THIRTEENTH CONGRESS THIRD REGULAR SESSION

SESSION NO. 44 Tuesday to Friday and Monday November 2 1 to 24 and 27.2006

CALL TO ORDER

At 3:15 pm., Tuesday, November 21, 2006, the Senate President, Hon. Manny Villar, called the session to order.

PRAYER

Sen. Francis N. Pangilinan quoted the following passage from the Book of Proverbs 16:21-33:

The wise in heart shall he called prudent; and the sweetness of the lips increased learning.

Understanding is a wellspring of life unto him that has it: hut the instruction of fools is folly.

The heart of the wise teaches his mouth, and added learning to his lips.

Pleasant words are as an honeycomb, sweet to the soul, and health to the bones.

There is a way that seemed right unto a man, hut the end thereof are the ways of death.

He that labored for himself; for his mouth craved it of him.

An ungodly man dig up evil; and in his lips there is a burning fire.

A forward man sows strife and a whisperer separates chief friends.

A violent man entices his neighbor, and leads him into the way that is not good.

He shuts his eyes to devise forward things; moving his lips he brings evil to pass. The hoary head is a crown of glory, if it he found in the way of righteousness.

He that is slow to anger is better than the mighty; and he that rules his spirit than he that takes a city.

The lot is cast into the lap; hut the whole disposing thereof is of the LORD.

Amen.

SUSPENSION OF SESSION

Upon motion of Senator Pangilinan, the session was suspended.

It WQS 3117 p.m.

RESUMPTION OF SESSION

At 3:22 pm., the session was resumed.

ROLL CALL

Upon direction of the Chair, the Secretary of the Senate, Oscar G. Yabes, called the roll, to which the following senators responded

Arroyo, J. P. Defensor Santiago, M. Drilon, F. M. Ejercito Estrada, J. Ejercito Estrada, L. L. P. Flavier, J. M.

Lacson, P. M. Lim, A. S. Pangilinan, F. N. Pimentel Jr., A. Q. Villar. M.

With 11 senators present, the Chair declared the presence of a quorum.

Senators Angara, Biazon, Cayetano, Enrile, Madrigal, Magsaysay, Osmeria, Recto and Roxas arrived after the roll call.

Senators Gordon and Lapid were abroad on official mission.

Senator Revilla was on sick leave.

APPROVAL OF THE JOURNAL

Upon motion of Senator Pangilinan, there being no objection, the Body dispensed with the reading of the Journal of Session No. 43 and considered it a p p r o v e d . y

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728 TUESDAY. NOVEMBER 21.2006

ACKNOWLEDGMENT OF THE PRESENCE OF GUESTS

At this juncture, Senator Pangilinan acknowledged the presence of Sec. Romulo Neri of NEDA and high school students from Brentwood School, Imus, Cavite accompanied by Mr. Dante Medalla and Ms. Maricel Manalansan.

REFERENCE OF BUSINESS

The Secretary of the Senate read the following matters and the Chair made the corresponding referrals:

MESSAGE OF THE PRESIDENT OF THE PHILIPPINES

Letter of Her Excellency, President Gloria Macapagal Arroyo, dated 16 November 2006, recommending to the Senate the ratification of the Japan- Philippines Economic Partnership Agreement (JPEPA), which was signed in Helsinki, Finland on 9 September 2006.

To the Committee on Foreign Relations

COMMUNICATION

Letter from Executive Secretary Eduardo R. Ermita of the Office of the President of the Philippines, dated 15 November 2006, transmitting to the Senate the letter of even date of Her Excellency, President Gloria Macapagal Arroyo, addressed to Speaker Jose C. De Venecia Jr. of the House of Representatives, certifying to the necessity of the immediate enactment of House Bill No. 58 11, entitled

AN ACT PROMOTING ENTREPRENEUR- SHIP AND SUPPORTING THE DEVELOPMENT OF MICRO, SMALL, AND MEDIUM ENTERPRISES, AMENDING FOR THE PURPOSE

WISE KNOWN AS THE MAGNA CARTA FOR SMALL ENTERPRISES, AS AMENDED,

REPUBLIC ACT NO. 6977, OTHER-

pursuant to the provisions of Article VI, Section 26 (2) of the Constitution.

To the Committee on Rules

ADDITIONAL REFERENCE OF BUSINESS

MESSAGES FROM THE HOUSE OF REPRESENTATIVES

Letter from the Secretary Genera1,of the House of Representatives, informing the Senate that on 14

' November 2006, the House of Representatives passed the following House bills in which it requested the concurrence of the Senate:

House Bill No. 5838, entitled

AN ACT DECLARING THE MIMBILISAN WATERSHED LOCATED IN THE MUNICIPALITIES OF BALINGOAN AND TALISAYAN, PROVINCE OF MISAMIS ORIENTAL, AS A PROTECTED AREA UNDER THE

SCAPE, PROVIDING FOR ITS MANAGEMENT AND FOR OTHER PURPOSES

CATEGORY OF PROTECTED LAND-

To the Committees on Environment and Natural Resources: and Finance

and House Bill No. 5839, entitled

AN ACT DECLARING THE MT. BALATUKAN RANGE LOCATED IN THE CITY OF GINGOOG AND IN THE M U " A L l T I E S OF CLAVERIA, MEDINA AND BALINGASAG, ALL IN THE PROVINCE OF MISAMIS ORIENTAL, AS A PROTECTED AREA AND ITS PERIPHERAL AREAS AS BUFFER ZONE, PROVIDING FOR ITS MANAGEMENT AND FOR OTHER PURPOSES

To the Committees on Environment and Natural Resources; and Finance

COMMITTEE REPORT

Committee Report No. 160, submitted by the Committee on Finance, on House Bill No. 5794, introduced by Representative Salceda, et nl., entitled

AN ACT APPROPRIATING FUNDS FOR

MENT OF THE REPUBLIC OF THE PHILIPPINES FROM JANUARY ONE

THE OPERATION OF THE GOVERN-

TUESDAY, NOVEMBER 21,2006 729

TO DECEMBER THIRTY-ONE, TWO THOUSAND SEVEN, AND FOR OTHER PURPOSES,

recommending its approval with amendments

Sponsors: Senators Drilon, Recto, Arroyo, Miriam Defensor Santiago, Biazon, Magsaysay Jr., Gordon, Mar Roxas, Ramon “Bong” Revilla Jr., Manuel “Lito” M. Lapid, Enrile, and all the Members of the Committee on Finance

To the Calendar for Ordinary Business

SPECIAL ORDER

Upon motion of Senator Pangilinan, there being no objection, the Body approved the transfer of Committee Report No. 160 on House Bill No. 5794 from the Calendar for Ordinary Business to the Calendar for Special Orders.

COMMITTEE REPORT NO. 160 ON HOUSE BILL NO. 5794

(Continuation)

Upon motion of Senator Pangilinan, there being no objection, the Body considered, on Second Reading, House Bill No. 5794 (Committee Report No. 160), entitled

AN ACT APPROPNATWG FUNDS FOR

MENT OF THE REPUBLIC OF THE PHILIPPINES FROM JANUARY ONE TO DECEMBER THIRTY-ONE, TWO THOUSAND SEVEN, AND FOR OTHER PURPOSES.


Pursuant to Section 67, Rule XXIII of the Rules of the Senate, with the permission of the Body, upon motion of Senator Pangilinan, only the title of the bill was read without prejudice to the insertion of its full text into the Record of the Senate.

The Chair recognized Senator Drilon for the sponsorship.


Upon motion of Senator Drilon, the session was suspended.

It was 3:28 p.m.


At 3:30 p.m, the session was resumed.

SPONSORSHIP SPEECH OF SENATOR DRILON

In sponsoring House Bill No. 5794, Senator Drilon delivered the following speech

GROWTR WITH EQUlTY: MAIUNGPEOPLEMATI%R

I have the honor and privilege to present, for the approval of this august Chamber, the proposed national budget for fiscal year 2007.

I stand before you today humbled by the enormous task of presenting an important mechanism that will steer our economy next year; and proud and hopeful that we are coming up with a piece of legislative work that will make a difference in the lives of 85 million Filipinos.

Let it be said tha.t we are crafting a national budget that does not focus solely on the imperatives of economic growth, but a national budget that pursues growth with equity. We are proposing a national budget which has at its core the welfare and development of every Filipino man, woman and child.

It is tragic that based on the latest SWS survey, almost three million Filipino households are experiencing hunger. According to a World Bank data, as reported recently in the papers, 10.8% of the population live below the $1 ($1=P49) poverty line, and 41.2% of the population live below the $2 a day poverty line in 2005.

What kind of future awaits millions of children who could not go to school, or were forced to stop their studies, because of dire poverty? How will this nation fare in the 21“ centwy if millions of its citizens have no access to primary health care?

As signatory to the UN Millennium Declara- tion, the Philippines is committed to reduce poverty and eliminate the worst forms of human deprivation by 2015. However, NEDA’s Second Philippines Progress Report, covering the period 2001-2005, shows that there is low probability of meeting the targets of three Millennium Develop- ment Goal (MDG) indicators: Elementary Cohort Survival Rate, Elementaq Participation Rate, and Access to Reproductive Health Services. And medium probability, with respect to achieving the Nutrition and Maternal Health targets. .

730 TUESDAY, NOVEMBERZI, 2006

Data also indicate the difficulty of attaining our goal of universal primary education by 2015. Indeed, as records from the Department of Education show, the cohort survival rate in 2004- 2005 for elementary education stands at 63.26%. This means that out of every 100 pupils who enter Grade 1, only 63 would reach Grade 6. It is notable that the net participation rate in public and private elementary schools, or the proportion of enrollees 7-12 years old vis-a-vis the total population of 7-12 years old, has been declining over the years from 94.33% in 1996 to 76.06% in 2004. The Department of Education attributes low school participation to economic reasons. One other important issue is the quality of education in our country today, which leaves much to be desired. A standardized test administered to Grade 6 students, the results of which came out in May 2005, showed that only about 20% of all Grade 6 pupils had the mastery of the required competency for that level. Ang ibig sabihin PO, only one out of every five Grade 6 pupils has reached the competency of a Grade 6 pupil. The rest would have the competency of lower grades. The remaining 51% are nearing mastery, and 29% showed no mastery at all. On the whole, the results revealed a glaring, system- wide low mastery of the required basic education competencies.

On the other hand, although there is a notable decline in the maternal mortality rates or the deaths of women from pregnancy-related causes per 100,000 live births, it stood at 180 in 1995. Moreover, the prevalence of malnutrition in 2001 is shown by the fact that 32.9% of children ages 6-10 years old are underweight, and 41.1% are under height.

Despite the glowing economic reports regularly dished out by the Executive branch, the social statistics will readily tell us that there is no equitable distribution of economic fruits. The much-touted GDP growth is meaningless because, sadly, it is a jobless growth. Data from the 2006 Asian Development Bank Economic Outlook show that the Philippines registered an average unemployment rate of 11.4% from 2001 to 2005, the highest among the original members of the ASEAN.

The unemployment rate indicated that the Philippines has an average unemployment rate of 11.4%, the lowest in the original ASEAN grouping with Indonesia, Malaysia, Singapore, Thailand and Vietnam.

The figures do not lie. Hence, the trumpeted economic gains are hollow and empty for there is no remarkable improvement in the lives of our

countrymen, as millions of them remain poor and jobless. The rosy economic picture that our country’s economic managers would like us to see and believe is insignificant in the life of Juan de la Cruz, who struggles everyday to look for a job and provide his family with the basic needs.

Given this, the agriculture sector must be accorded the attention it deserves since, as of 2005, it employed 11.63 million Filipinos or 36 % of the country’s total employment, However, data show that even if the nominal wages of agricultural workers went up, their real wages were on the decline. Hence, there is a need to sustain the sector’s productivity as this would correspondingly raise the income and standard of living of more than 11 million Filipinos.

The President’s message, “Focusing on the Imperatives of Growth.” proposed a P1.126 trillion budget for Fiscal Year 2007. It is based, inter alia, on a GDP growth of 5.7%-6.5%, inflation rate of 4.3%-4.8%, and an exchange rate of P51-53 to US$1. It consists of Program- med New Appropriation of P574.112 billion, Unprogrammed New Appropriation of P67.008 billion, and Automatic Appropriation of P552.227 billion which increased considerably due to the inclusion of the Internal Revenue Allotment. Also part of Automatic Appropriation are Interest Payments of P328.733 billion, which will decline by 3.31%, or P11.265 billion compared to its 2006 allocation.

On the screen, we will see the Interest Payment on National Government debts - P328,733,000,000; Internal Revenue Allotment - P183.9 billion; Retirement and Life Insurance Premium - P14.9 billion; Special Account - P14.2 billion; Net Lending - P9.1 billion: Tax Refunds - P732 million; Grant Proceeds - P556.5 million; and Pension under RA No. 2087 and R.A. No. 5059 - P331,OOO.

The total public sector infrastructure budget of P162.93 billion is 2.43% of Gross Domestic Product. Despite the considerable increase, it is still way below the World Bank-recommended benchmark of 5% of GDP for middle-income countries in East Asia.

In the House-approved budget, the total New Programmed Appropriation stands at P574.112 billion, registering a net increase of P8.256 billion from the President’s budget. The General Appropriations Bill which we have received from the House increased this to P582,369,000,000, or an increase ofP8,256,000,000. If we add the automatic appropriations, this budget will now total P1.134 trillion.#

TUESDAY, NOVEMBERZI, 2006 73 I

To ensure the timely approval of the national budget, the Senate Committee on Finance commenced in September 2006 extensive, daily hearings that sometimes stretched late into the night. After subjecting the proposed budget to careful scrutiny, we came up with our proposed amendments to the General Appropriations Bill.

We are cutting the House-approved budget of P649,377,264,000 by P8,256,367,000, thus bringing back the total to the level of the President’s budget as follows:

New Appropriation P 641,120,897,000 Unprogrammed

Appropriation 67.008.479.000 Programmed

New Appropriation 574,112,418,000 Automatic

Appropriations 552.226.582.000 Total P1,126,339,000,000

The following are some of the highlights of the amendments proposed by the Committee on Finance:

First, we propose a budget of P126.311 billion for the Department of Education, or an increase ofP2.8 billion over the House-approved budget, and we propose to redirect the budget of the Department of Education as follows:

FROM TO INCREASE (in Billion Pesos)

School Building Program 2.7 6.7 4.0

GASTPE 2.440 3.140 0.700 Creation of

Teaching & Nan-teaching positions 1.182 2.550 0.873

There is a need for 16,390 teachers for FY 2007 according to the Department of Education. However, the President’s budget only provided for the hiring of 10,000 teachers. Hence, the Committee on Finance is proposing additional funds for the hiring of 6,390 more teachers to complete the need for more mentors in 2007. Therefore, the total hiring for 2007 would be 16,390, 10,000 of which is found in the President’s budget and the additional 6,390 as proposed by the Committee on Finance, so that by July 2007, we can claim that we have enough funds so that there would be zero backlog for teachers.

Also, the Committee has provided P4 billion for school buildings. We are addressing squarely the classroom shortage by meeting the need for 8,362 more classrooms, with each classroom

accommodating 45 pupils on a double shift basis, which were not funded under the President’s budget. Therefore, by the end of the fiscal year, we should be able to claim that there is no more schoolroom backlog, that we have provided funds for all the needs of our public education sector.

Excluding the increase for the Philippine General Hospital o f P200 million, we are proposing an increase of P142.570 million in the budget of the University of the Philippines to provide the much-needed support for scholarships and buildings in the College of Engineering. The P142.570 million will cover scholarships and hnd the requirement of one building and, therefore, this should meet partially, at least for the first year, the requirements of the College of Engineering.

Second, we are appropriating P250 million for a school-based nutrition feeding program.

Since malnutrition must be arrested by the age of seven so as not to jeopardize the child’s growth and development, several feeding programs (Le. providing milk, eggs, cocopan de sal and vegetable-based noodles to the children in the classroom) were introduced by the Depart- ment of Education over the years. However, it was alarming to learn that these school feeding programs were replaced with the Food for School Program, which is actually a rice distribution program. Schoolchildren would bring home rice to their families, instead of eating nutritionally rich food while they are in school. For this purpose, we discovered that the National Food Authority (NFA) imported 88,880 metric tons of rice for the past 12 months, at a cost of nearly PI .8 billion, distributing rice to recipient schools even during the school summer vacation from April to June this year.

We may ask Is this provided in the 2006 budget? The answer is “no.” In the 2005 budget which was reenacted in 2006 is an item for P73 million for a nutrition program of the Department of Education. This was supplemented by P1.8 billion, in order to purchase imported rice through the NFA, to the tune of Pl.8 billion or 88,880 metric tons.

Hence, we now refocus our efforts on a credible school nutrition program which will provide milk, eggs, coco pan de sal and vegetable-based noodles to the children while they are in school.

Third, we propose to increase the Post- Harvest Facilities of the Department of Agriculture fiom PI ,197 billion to P2.694 billion, which will be distributed to different regions. #

732 TUESDAY. NOVEMBERZI. 2006

Fourih, we propose to cut the Comelec budget from P9.718 billion to P8.968 billion, as we believe that the proposed appropriations for the national, local and barangay elections are overstated.

Fffih, we propose an increase of P890.477 million for the budget of the health sector vis-& vis the President's budget, for various regional hospitals and specialty hospitals, including the Philippine General Hospital.

SZrrh, we transfer the Tulay ng Pangnlo Para sa Mngsnsaka project amounting to P1.096 billion from the Department of Agrarian Reform- AFMA to the Department of Public Works and Highways, where projects of similar nature were previously lodged,

Seventh, we propose a budget of P61.661 billion for the Pension and Gratuity Fund, or an increase of P4.163 billion over the House- approved budget. We are pleased to note that we have provided for a P15O-million allocation for valid claims of the PC-INP retirees, the payment of which shall be subject to the decision of the Supreme Court.

Eighth, we propose a substantial reduction of P195.6 million in Confidential and Intelligence Funds. We learned from our esteemed colleague, Sen. Juan Ponce Enrile, that Confidential and Intelligence Funds should be allocated only for agencies which are considered intelligence data-gatherers and not agencies which are intelligence data-users.

It is the standard that we used to prune down the Confidential and Intelligence Funds which are audited through what we call a closed- envelope system. The Confidential and Intel- ligence Funds, therefore, under our Committee's proposal, would only he for the Armed Forces of the Philippines, Philippine National Police, Bureau of Immigration, National Bureau of Investigation, and Philippine Drug Enforcement Agency.

I must add that .there is a P650-million Confidential and Intelligence Funds in the Office of the President. From the testimony that was gathered during the Committee hearings, the Executive Secretary stated that these Confidential and Intelligence Funds are being used only by agencies which are gatherers of intelligence information, namely, the AFP, PNP, BI, NBI and the PDEA.

a Special Judiciary Fund of P733.475 million. We must state that we did not reduce the budget of the Judiciary. In fact, there were increases. This is in line with the constitutional provision which restricts Congress from appropriating a budget for the Judiciary which is below the amount appropriated in the previous year. We have isolated the items in the budget of the Judiciary which are non-recurring, as in the case of capital outlays. Thus, once the purpose for which the fund is allocated has been served, for example, where the fund allocated for a building has been finished under the item of capital outlay, the same can be deleted from next year's budget, without running afoul with the constitutional prohibition against reducing the Judiciary's budget. We have consulted the Judiciary, the Supreme Court on this matter, and they have expressed no objection to creating a special judiciary fund for non-recurring items.

Some of the more significant Special and General Provisions include the following. 1.

2.

3.

4.

5.

A provision for a Special Hardship Allowance for teachers exposed to hardship or extreme difficulty in the place of work; The construction of school buildings in areas experiencing acute classroom shortage, and providing P250 million for NGOs with proven track record in the construction of public school buildings; A special provision on Malusog na Simula, Yaman ng Bansa Program which provides that the milk to be used for the school-based nutrition feeding program will be sourced from local dairy suppliers or cooperatives and that the program will not include the distribution of rice and other ingredients for pupils to take home; A Special Provision under the Agrarian Reform Fund, as suggested by Senator Recto, which provides that the deficiency in the amount appropriated for the maturing bonds and interest on bonds of landowner compensation shall be considered automatically appropriated and included as part of the debt service program of the national government; A General Provision on the Right of People to Information on Matters of Public Concern which will make transparent and available to the general public the records on the use of the public funds under this budget.

As regards the Judiciary budget, we have In conclusion, the proposed national budget split the House-approved budget o f the Judiciary for 2007 is not merely about figures, and definitely amounting to P9.348 billion into two parts: the not just about the allocation of government Judiciaty Proper amounting to P8.614 billion; and money. It is about decisions, directions, choices A%'

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TUESDAY. NOVEMBER 21.2006 711

and commitments, for the national budget is not just about making promises, but on making good on those promises.

Our people are tired of empty rhetoric. They want to see concrete actions and results. They want to see a government which is sincerely and seriously seeking ways to significantly improve their lives - a government that provides them with opportunities and choices.

We must not disappoint them. We must remain steadfast in our commitment to pursue our development goals, reduce poverty, strengthen social infrastructure, and provide our people with a safe and secure environment.

Economic growth should be felt by every Filipino man and woman on the street and in the fields; and by the Filipino child, as he or she faces an unknown future. Economic growth is meaningless if most Filipinos dreadfully look into a future laden with uncertainties and insecurities.

It is not enough that we focus solely on the imperatives of growth. We must pursue growth with equity.

INTERPELLATION OF SENATOR DEFENSOR SANTIAGO

Senator Defensor Santiago asked whether the proposed budget complied with the constitutional provision that the “State shall assign the highest budgetary priority to education and ensure that teaching will attract and retain the best talents through adequate remuneration and other rnems of job satisfaction and fulfillment.” She noted that the Members, upon entering the session hall, were met by a group of young people with flowers who were lobbying for an increase in the budget of state colleges and universities.

Senator Drilon disclosed that the Senate version proposed an increase of P2.8 billion in the budget of the Department of Education over the House version, giving the education sector the highest allocation in the budget, in compliance with the constitutional provision.

INTERPELLATION OF SENATOR ARROYO

Replying to Senator Arroyo’s queries, Senator Drilon informed the Body that the House increased the programmed appropriation by P8.2 billion, in effect, increasing the budget submitted by the President. He stated that the government’s economic managers

shared the view that the increase might be questionable, both from constitutional and fiscal positions. He stressed that the budget proposed by the Senate kept within the national expenditure program of the Executive branch.

INTERPELLATION OF SENATOR MAGSAYSAY

Asked by Senator Magsaysay how the Body could put substance to the general provision on the right of people to public information, considering that a lot of Senate hearings in the past failed to extract basic information on public transactions, Senator Drilon replied that the Committee would propose the insertion of a special provision which mandates every government agency of the executive, legislative and judicial branches to make available all data in its possession and to reproduce all records in any form pertaining to the implementation of the budget appro-priations within five working days upon request, except in unusual circumstances.He expressed the view that the provision covers all government corpo-rations, although the disclosure of information might be limited to the subsidy in the budget.

Upon further query, Senator Drilon believed that the budget is developmental in nature. But he pointed out that the most important amendment that the Committee introduced was in the budget of the Department of Education which was increased by P7 billion through actual increases and redirection of certain funds. Moreover, he agreed that the fitness of those who would monitor and execute the budget should be subject to scrutiny but he conceded that the Body could not insert a provision of that nature in the budget of expenditures. He posited that the other mechanisms in the government system should be able to address this concern.

INTERPELLATION OF SENATOR PIMENTEL

Asked by Senator Pimentel why the rice distribution program being implemented by the DepEd is being replaced by a school feeding program, Senator Drilon explained that the budget item is for a malnutrition program and the rice distribution program is not a malnutrition issue. Instead, he said that the Committee increased the budget to P250 million from P73 million and redirected the budget for rice to the Department of Agriculture for post-dl”/

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734 TUESDAY, NOVEMBER21,2006

harvest facilities. He affirmed the observation that redirecting the rice distribution from the schools to the DA would prevent anomalies, considering that the rice distribution program was being undertaken even during summer mouths when the children are out of school.

INTERPELLATION OF SENATOR E N W E

Senator Enrile observed that the budget included a P67-billion unprogrammed appropriation to be released only when revenue collections exceed revenue targets, a component of which is a P30.50-billion allocation to “support infrastructure projects and social program” which is part of the Medium-Term Philippine Development Program (MTPDP). He asked whether government is really serious in implementing the programs identified in the MTPDP. In reply, Senator Drilon assumed that the P30.50-billion allocation was placed under the unprogrammed portion because there are not enough revenues and no foreign loans in the pipeline to fund the projects. He said that the budget secretary had been requested to submit to the Body a specific listing of the projects under the allocation so that when the funds become available, Congress could allocate them on a per-project basis.

Asked why the P10.3-billion allocation for the salary standardization of government employees was not included in the 2007 budget, Senator Drilon assumed that the economic managers wanted to preserve the programmed deficit of P63 billion, since adding P10 billion to the deficit would raise constitutional questions. He bared that the Executive department would be proposing a measure amending the Salary Standardization Law to provide for the P10-billion salary increase.

Senator Enrile asked whether there was a rational basis for the allocation of the 2007 budget to each department as he cited the allocations of the top five departments: Department of Education, P132.9 billion; Department of Public Works and Highways, P73.6 billion; Department of the Interior and Local Government, PP5 1.1 billion; Department of National Defense, P49.5 billion; and the Department of Agriculture (inclusive of the Agriculture and Fisheries Modernization Program component), P18.5 billion.

Senator Drilon explained that the first rationale was the Constitution, which provides that education shall have the highest priority in the budget; in the case of the Department of Agriculture, the agency

manages the agricultural sector which is the biggest contributor to the Gross Domestic Product (GDP); on the other hand, the DPWH, as the driver of growth and infrastructure programs, has the biggest impact although the allocation for infrastructure projects, which is only about 2% percent of GDP, is way below the standard for middle-income countries.

At this juncture, Senator Defensor Santiago affirmed that the Constitution places the highest budgetary priority on education. She noted that the next highest priority is social justice, as the Constitution provides that “Congress shall give highest priority to the enactment of measures that protect and enhance the right of all the people to human dignity, reduce social, economic and political inequalities, and remove cultural inequities by equitably diffusing wealth and political power for the common good.”

Senator Enrile observed that under the Special Purpose Funds, the following were provided substantial allocations: Local Government Units, P197.4 billion; Pension and Gratuity Fund, P65.5 billion; Agriculture and Fisheries Modernization Program, P21.7 billion.

Senator Enrile said that out of the proposed P1.126 trillion, the top five regions that got the largest allocations are Region IV, P51.67 billion; NCR, P43.21 billion; Region IU, P36.15 billion; Region VI, P35.94 billion; and Region VII, P26.282 billion. He said that his region, Region 11, which is ranked lothin the allocation, would be getting only P18.66 billion. He added that the 2006 budget also provided the highest allocations to the same five regions, although in different order, with Region IV and NCR consistently ranking as nos. 1 and 2, respectively. Based on the table prepared by the government, he observed that all the five regions that were given the largest allocations in the 2007 budget are the very regions whose poverty incidences are lowest, according to the 2003 poverty estimates by the National Statistical Coordination Board. He asked what criteria were used for the regional allocation. Senator Drilon clarified that the allocations for the five regions are higher because more than 40% of the population are found there. However, in terms of per capita allocation, he pointed out that Mindanao has the highest at P5,346, and the five cited regions have the lowest per capita; thus, while it appears that the five regions have higher allocation on a regional basis, it is so because they have larger population but, on a per capita basis, they are the lowest. 4r

TUESDAY. NOVEMBER 21.2006 715

Pointing out that the people in Metro Manila are richer than those in the other regions, Senator Enrile argued that rather than using a per capita basis, the poverty levels of the different regions should be the the basis of allocation. Senator Drilon replied that unavoidably, the allocation was based on population because, theoretically, there are more people in the rural areas in Luzon than in other areas of the Philippines, so that on a per capita basis, the regions with higher poverty incidence have higher allocations.

Senator Enrile asked why a locality with 500 people, a higher level of poverty, and very poor infrastructure and amenities, for instance, would get a lower allocation than a locality of 1,000 wealthier people. Senator Drilon said that on a per capita basis, given a budget of P1,000, for instance, the locality of 1,000 people would have a per capita of PI while the locality of 500 people would have a per capita of P2.

Senator Enrile said that in theory, while the per capita basis is good, the five regions that received higher allocations in 2004, 2005 and 2006 increased their well-being more than the regions that were considered poor. He believed that the per capita system of allocating funds does not seem to work out.

Senator Drilon assumed that one of the standards used in the dlocation of h d s was the MTPDP which is supposed to allocate resources to the projects with the highest benefit for the most number of people. Hence, he said that if the project was located in a more developed area, its budget would be higher. For instance, he said that an airport project should be located in an economically viable and developed area for the airlines to operate; otherwise, it would be a white elephant, a project which nobody would be using.

INTERPELLATION OF SENATOR LIM

Noting that the cohort survival rate stands at 63.26% in the elementary level, Senator Lim asked why about 36% of the students could not make it to graduation. Senator Drilon replied that according to the DepEd, this could be partly due to poverty, and what makes the situation worse is that only 20% of the 63.26% has the competency of a Grade VI student.

In reply to another query, Senator Drilon stated that lack of education is one of the main causes of poverty in the country, a cycle which must be broken by providing more funds for educational concerns.

Senator Lim called the attention of the Body to the policy of some public elementary and high schools of requiring their enrollees to shell out money in the guise of contributions or donations. He revealed that in Manila, an enrollee is required to pay P105 to the Parent-Teacher Association (PTA), for the Boy Scouts of the Philippines (BSP), the Philippine National Red Cross (PNRC), and the Anti-Tuberculosis Education and Fund Drive.

Asked whether there is an item in the budget to address this particular concern, Senator Drilon replied in the negative, stating that government cannot provide funds for the benefit of private organizations and even the PTA. The incumbent Manila mayor, he said, should be told to stop the practice.

Senator Lim stated that during his term as Manila mayor from 1992 to 1998, the practice of collecting donations and contributions from students was prohibited, and this was also observed during the tenure of the late Secretary Education Raul ROCO. He wondered why the national government could not assume the daily expenses of the city schools, which compels some teachers to ask their students for money. He said that while poverty is indeed one of the reasons for the increase in the number of school dropouts, the Committee should consider increasing the DepEd budget to address this particular concern.

Senator Drilon stated that the 2007 budget, which has a program deficit of P63 billion, could not accommodate the additional burden for this particular item but it may be included in the budgets in coming years when government revenues shall have improved. He said that in the meantime, the funding needed to support concerns such as the PTA and the BSP could be properly addressed by the respective local government units through the School Board Fund and their IRA, which has been growing at an average rate of 12% as against the national budget's growth of just about 9%. Nonetheless, he stated that the Committee has provided for a special provision that the salaries of public schoolteachers and other government personnel may not be reduced because of indebtedness to private companies.


With the permission of the Body, the Chair suspended the session to allow the senators to greet former Sen. John H. Osmeiia.

.Ba' It was 4:55 p.m. t"



At 455 p.m., the session was resumed.

ACKNOWLEDGMENT OF THE PRESENCE OF GUEST

At this juncture, Senator Drilon acknowledged the presence of the Sec. Roland0 Andaya of the Department of Budget and Management.

REMARKS OF SENATOR PANGILINAN

Senator Pangilinan said that Senators Angara, Pimentel and Recto made reservation to interpellate on 2007 General Appropriations Bill in the next day’s session.



It was 4:56 p.m.


At 5:OO p.m., the session was resumed.

REMINDER OF SENATOR PANGILINAN

Senator Pangilinan reminded the Body that as agreed upon in caucus yesterday, the interpellations on the 2007 GAB would resume at ten o’clock the following morning.

He informed the Body that in the morning, the Body would discuss the macroeconomic assumptions of the budget used by the Development Budget Coordinating Committee (DBCC) and in the afternoon, the budget of the Department of Education, Culture and Sports (DECS) which includes the Office of the Secretary, attached agencies, the School Building Program, the Commission on Higher Education (CHED) and the state universities and colleges.

SUSPENSION OF CONSIDERATION OF HOUSE BILL NO. 5794

Upon motion of Senator Pangilinan, there being no objection, the Body suspended consideration of the bill.

PRIVILEGE SPEECH OF SENATOR EJERCITO ESTRADA Q

Availing himself of the privilege hour, Senator Ejercito Estrada (J) delivered the following speech:

PRESS FREEDOM BESIEGED

As we jubilate and bask in the victory of perhaps the greatest Filipino ring-fighter of all time, Manny Pacquiao, in the grand finale of one of the most memorable boxing rivalries in recent history, let us not ignore another colossal battle unfolding in the Philippine legal landscape that recently captured the attention of the international community.

I am referring to our hard-earned and precious “Press Freedom,” the hallmark of our democracy, which is now being besieged and badgered by the political and legal juggernaut, also known to many as Atty. Mike Arroyo.

I speak before you on a matter of personal and collective privilege in order to place on record, and to condemn and denounce, in the strongest possible terms, the sinister strategy of Mr. Arroyo to terrorize, harass, and to ultimately silence the free press and the vigilant media who investigate and report on his anomalous transactions and activities, including that of his wife, his family, and his cronies.

Over the ,last two years, Atty. Mike Arroyo has filed a series of criminal libel suits against 43 reporters, columnists, editors, publishers and other media professionals. He also fied criminal libel cases against at least six other critics, including this Representation, Sen. Ping Lacson, former senator, Kit Tatad, and Congressman Alan Peter Cayetano, bringing to at least 50 the total number of persons he has sued for libel since his legal wife, Mrs. Gloria Macapagal Arroyo, grabbed power in 2001.

This is already the highest number of libel charges filed by a single person in the annals of Philippine legal history. But apparently, there is no stopping this political and legal juggernaut from filing more criminal libel cases in the future, in view of the dark and temhle warning he issued last week against his critics in the press and media.

And what is most terrifying, especially for the press and media, is that all the libel cases he filed, no matter how weak the grounds are, seem to have prospered in the tiscals’ offices and reached the courts, despite the constitutional guarantee on press freedom. As a result, warrants


of arrest have been issued by the courts, and these are immediately enforced by police authorities against reporters, columnists, editors, publishers and other media professionals, oftentimes without warning, such as what has happened to this Representation, and recently, to Miss Mia Gonzales of the Business Mirror.

The National Union of Journalists of the Philippines has denounced this barrage of libel cases filed by Attorney Arroyo as an effort to muzzle his critics.

In protest, more than 600 Filipino reporters and media practitioners, joined by their colleagues from 14 countries and 21 local and international media organizations, petitioned and demanded Mr. Arroyo to cease and desist from exploiting libel as a tool to cow the media. Almost every publisher, editor, columnist, and reporter all over the country, including those from community newspapers from Luzon, Visayas and Mindanao have joined the rising chorus against Mr. Arroyo’s wanton disregard for press freedom.

In one voice, the alarmed local and international media organizations in a joint statement said: “The record number of cases Mr. Arroyo has filed highlight how the powerful in this benighted land regularly abuse libel laws to curtail the democratic right of the press to delve into the tiuth behind matters of public interest and the people’s, right to know.

The libel cases filed by Mr. Mike Arroyo against media professionals have a common template which implies a systematic assembly- line effort to stifle the press and media. Mr. Anoyo has turned our libel law into a seeming weapon of mass destruction to stifle criticisms and unfavorable reporting against his legal wife’s repressive regime. The apparent intent was to create a chilling effect not only on journalists and media people, but on political dissent as well.

Mr. Arroyo has already become an international celebrity for hounding journalists and for casting a long shadow over investigative journalism and the independent press. With his tremendous political clout, as husband of the usurper President, and his utter lack of public accountability, being a self-proclaimed private citizen, Big Mike Arroyo has become the media’s worse nightmare.

He claims that the people he sued for libel are not telling the truth, “Shame on you!” Or, merely inventing stories to malign his reputation, including that of Gloria Macapagal Arroyo and their family.

In short, he is saying that more than 50 people that he sued for libel are all liars. But, who is more credible? Who is truthful? Sin0 ba talaga ang nagsaabi ng totoo? Ang mahigit na limampung katao na kinasnhan niya ng libelo o ang nag-iisang nag-aakusa na si Ginoong Mike Arroyo? Siguro naman may isa at sa palagay ko higit pa sa isa sa mga nakasuhan ng libelo ang nagsasabi ng totoo.

When Senator Tatad tagged him the “Chief Cheater” in the last elections, was he just inventing stories? A great many people do not think so. When this Representation accused him of being the godfather of big-time smugglers, was I merely inventing stories? Most people think not. Even your former buddies, the Tulfo brothers whom you sued for libel, think otherwise.

When Senator Lacson called you “Jose Pidal,” the money-launderer at “Alam ba ni Mrs. Toh?,” was he merely inventing stories? I am sure everyone think not. Even your legal wife some quarters say seriously doubts you. In fact, the case against Senator Lacson, I was informed, was dismissed outright by the court.

When Linda Montayre exposed the gentleman for receiving billions of pesos in kickback from OFW deployments, was she merely inventing stories? Many people think not.

When Congressman Alan Peter Cayetano accused the gentleman of maintaining multi- million German bank accounts, was he merely spinning fairy tales? I am certain many people believed him. Legal luminaries believed that the certificate the gentleman allegedly obtained from his German bank is self-serving and without any value as evidence.

When Mia Gonzales of Business Mirror referred to the gentleman’s “crookedness” in that Newsbreak article, was she merely inventing stories? I believe everyone knows that he really is a crook. His high-handedness and abuse of power merely confirm this.

When the journalists he sued investigated and reported on his ill-gotten wealth registered in the names of his dummies both here and abroad, were they making it all up?

When journalists exposed the anomalous transactions and activities of the government officials he helped get appointed to juicy and sensitive positions through his political and conjugal clout, the likes of JOC-JOC Bolante, sila ba ay nananaginip lamang? Kung saan naka- kakita ng usok, malamang doon may sunog. &’


Para sa mga pamilya Arroyo, bowal magtanong, bawd ang mag-imbistiga, kaya ‘1 pag nagtanong ka o mag-imbistiga ka laban sa kanila, sapul ka kaagad sa kasong libelo.

Hundreds of journalists and media people have challenged the gentleman to squarely face the issues raised against him in the arena of free and democratic discourse.

Ginoong Mike, kung nakikinig ka man lamang, bakit hindi mo harapin at sagutin ang mga paratang sa iyo sa tamang paraan? Why is libel suit his answer? Is he afraid of the truth?

Ginoong Arroyo, hard-hitting journalist Ramon Tulfo was the gentleman’s erstwhile friend. Now, he is his bitter enemy. He must know him then and the truth about his illegal transactions and smuggling activities with businessman Sammy Lim and Vicky and Thomas Toh.

This afternoon, while Senator Drilon was delivering his sponsorship speech on the budget, I saw the Commissioner of the Bureau of Customs watching eagerly, and now, I would like to request - and I would like Senator Drilon to also hear this - the names of the big-time smugglers identified with Mr. Mike Arroyo since the budget deliberations of last year and up to this date, my office has not received a single name from the Office of the Commissioner of the Bureau of Customs.

When my father Pres. Joseph Estrada was still vice president, he did file one case of libel and that was against his former, most vocal political opponent, the inimitable Manoling Morato. But my father was so uneasy about it that when he became president, in a show of humility and magnanimity, he withdrew this libel case in open court.

But suing 43 journalists and media people and several others totaling at least 50 person- alities is just too much. This is a completely different story. This is an ahuse of right and an affront to the constitutional guarantee on press freedom.

Neither should we forget that the Philippines has earned notoriety as the most dangerous place for journalists since Gloria Macapagal Arroyo illegally occupied Malacaiiang in 2001.

A total of 46 - I repeat, 46 media professionals - have been killed so far during the five-year regime of Mrs. Arroyo. Clearly, there is an unmistakable pattern here, an insidious plan to terrorize media people into silence and submission.

I therefore join the local and international journalists and media organizations who have condemned Mr. Mike “Jose Pidal” Arroyo who, when crossed, aims to gag and blindfold journalists by bludgeoning them with criminal libel suits and warrants of arrests. In response to the petition signed by more than 600 reporters, including foreign and local media groups, calling for the decriminalization of libel, 1 call on the Senate, particularly our Committee on Public Information, to fast-track Senate Bill No. 977, including the immediate passage of other bills, most especially Senate Bill No. 1828, creating the Magna Carta for Media Professionals in order to maximize the protection for independent crusading journalists and the free press.

Just this morning, the camp of Mike Arroyo officially declared its opposition to the decriminalization of libel under our penal system. Why, Mr. Mike Arroyo? Is this because you are afraid to lose your tool of repression?

My fellow senators, there is no tool more effective in destroying a democratic society and its institutions than a cowed media aligned with an immoral government that thinks that “the end justifies the means.” Let us therefore champion the cause of press freedom. Let us, as a body, defend the people’s right to information. Let us support the petition of Filipino journalists and their foreign colleagues in protesting the use of libel law as a tool to cow the independent press.

SUSPENSION OF THE PRIVILEGE HOUR

Upon motion of Senator Pangilinan, there being no objection, the privilege hour was suspended.

COMMITTEE REPORT NO. 79 ON SENATE BILL NO. 2263

(Continuation)

Upon motion of Senator Pangilinan, there being no objection, the Body resumed consideration, on Second Reading, of Senate Bill No. 2263 (Committee Report No. 79), entitled

AN ACT TO MAKE THE LAWS ON PATENTS, TRADENAMES AND TRADEMARKS MORE RESPONSIVE TO THE HEALTH CARE NEEDS OF THE FILIPINO PEOPLE BY CLAFWY- ING NON-PATENTAEKE INVENTIONS, ALLOWING THE IMPORTATION AND EARLY DEVELOPMENT OF PATENTED MEDICINES, AND &


MODIFYING GOVERNMENT USE PROVISIONS FOR DRUGS OR MEDICINES, TO LOWER PRICES AND INCREASE ACCESS TO AND SUPPLY OF QUALITY DRUGS OR MEDICINES, AMENDING FOR THIS PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8293 OTHER- WISE KNOWN AS THE INTELLEC- TUAL PROPERTY CODE OF THE PHILIPPINES.

Senator Pangilinan stated that the parliamentary status was still the priod of interpellations.

Thereupon, the Chair recognized Senator Roxas, Sponsor of the measure, and Senator Angara for his interpellation.

INTERPELLATION OF SENATOR ANGARA

Senator Angara commended Senator Roxas for sponsoring a pioneering legislation, adding that he has not seen any such proposal since the Generics Act which he authored.

Asked if the goal of the measure is to bring down the scandalously high cost of medicine, Senator Roxas replied in the affirmative.

Senator Angara noted that the bill seeks to achieve this goal by setting stricter standards for patent modification in the guise of new inventions, and allowing parallel importation and the so-called early working of an existing patent so that manufacturers and researchers can do experimental work even before patent expiry.

Senator Roxas stated that the Committee has determined that the main reason for the high cost of medicine is the lack of competition, pointing out that the limitations set forth in the patent law prevents the generic drugs industry from taking fbll advantage of the Generics Act, and the very nature of the Philippine market has limited the manufacture, retail, wholesale and distribution of medicines to only a few players. He explained that the bill intends to help the generic drugs industry by adopting the principle of the “early working provision” or the “Bolar provision” which allows the manufacturers and competitors as well to look into the elements of patented medicines even before patent expiry, and eventually produce marketable products. He added that the provision

limiting the 20-year patent protection would allow the discovery of a new application of the same medicine.

Senator Angara agreed that there is value in exploring the side effects that the original patent holder did not anticipate but may contribute even better results, subject to further investigation. He pointed out that Aspirin, which was originally invented as a painkiller in 1958, has been proven to be a more effective blood-thinner and heart disease prevention medicine; and Minoxidil, which was originally manufactured for heart disease treatment, has been proven to be effective for growing hair.

On the concern that there is a need to do a cost- benefit analysis with respect to prohibiting patent modification as provided under the Intellectual Property Rights Code, and the potential deterrence it may cause to innovation, Senator Roxas stated that the bill distinguishes between a new discovery involving the introduction of a new reactant to the product, and a side effect of the origirlal invention which already has patent protection; and seeks to restrict patent protection for new applications.

Asked whether the variants of Aspirin, Minoxidil, and Viagra are not patentable under the original patent holder, Senator Roxas replied that it would depend on the variant. He clarified that the bill disallows the issuance of another patent for the new use of an existing, unmodified product. He affirmed that in the case of Viagra, Pfizer researched and developed it originally as an anti-hypertension medicine but effectively marketed it as treatment for erectile dysfunction; nonetheless, Pfizer developed an anti- hypertension medicine, Revatio, for which it was given a new patent.

In such a case, Senator Angara commented that drug firms such as Pfizer and Bayer would then be prevented from reaping the benefits of their investments in marketing existing products that could treat other ailments.

Asked on the meaning of “new reactant,” Senator Roxas replied that it is a new element added to the product.

Senator Angara said that although he favored the bill’s objective of preventing patent holders from extending their monopoly over a patent just because of a superficial change in a medicine, he was concerned that the bill would allow the grant o f&

P

740 TUESDAY, NOVEMBER 21,2006

patents for new uses of the original invention following the three criteria for patentability, which would not only result in a thorough revamp of the local patent regime but would also run counter to the Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement.

For his part, Senator Roxas believed that there is no conflict as the bill makes the clarification that an invention is patentable if it fulfills the three criteria, one of which is that it should have a new reactant, composition or element to comply with the criterion for newness or inventiveness. He explained that as provided in the bill, an unmodified product would not be granted a new patent if it is only packaged or marketed differently. Moreover, he said that although the TRIPS has remained silent on this issue, World Trade Organization members such as India, Bolivia, Colombia, Ecuador, Peru, Venezuela and Pakistan have already adopted such a clarification in their patent laws to dissuade the practice of extension of patents on the basis of superficial changes.

Senator Angara underscored the need for a very clearly defined concept so as to prevent future questions and judicial intervention. Senator Roxas suggested that his and Senator Angara’s staff collaborate on an appropriate interpretation of the intention of the bill that could be read into the record.

On the difference between domestic and international exhaustion doctrines, Senator Roxas said the “doctrine of exhaustion” refers to the time when the patentee has exhausted his rights over the product. He explained that under the “domestic exhaustion doctrine” being practiced in the Philippines, the patent holder has monopoly over the sale and marketing of the product until he sells it within the Philippines, while the “international exhaustion doctrine” provides that the patent holder’s monopoly over the marketing of the product is exhausted once he sells the product anywhere in the world. Senator Angara pointed out that the proposal is the only way for the Philippines to import cheaper drugs from countries like Malaysia and India, which cost 20% less.

Asked whether parallel importation would, in effect, allow the importation of medicines without subjecting them to the scrutiny of the Bureau of Food and Drugs (BFAD), Senator Roxas explained that under domestic drug laws, local and imported medicines must be subjected to a BFAD registration

process. He said that at the proper time, he would welcome an amendment to the bill to this effect.


Upon motion of Senator Angara, the session was suspended.

It was 5:53 p.m.


At 5:53 p.m., the session was resumed.

Asked whether the international exhaustion doctrine is followed by many countries and is recognized by the TRIPs, Senator Roxas replied in the affirmative.

Senator Angara asked whether the bill, just like the Bolar amendment, aims to permit early experimentation and investigation of a specific drug or medicine long before the expiration of its patent so that the generic version of the drug would be ready at the time of the expiration. But he noted that under the bill, early experimentation could also be for commercial rather than experimental purposes. Senator Roxas replied that at the proper time, the Committee would introduce clarificatory language showing that the intent is for eventual commercial purpose.

At this point, Senator Angara stated that he would complete his interpellation in the next day’s session. He expressed support for the bill as he believed that it is one of the most innovative proposals on how to fight the scandalously high prices of medicines.

Adverting to the agreement reached in the caucus that the next two weeks would be spent primarily on the 2007 budget deliberations, Senator Roxas proposed that he and Senator Angara designate their technical staff to work on the issues relevant to the bill so as to hasten the process. Senator Angara agreed, adding that the staff could make use of the one-week break while the bicameral conference is meeting.

SUSPENSION OF CONSIDERATION OF SENATE BILL NO. 2263

Upon motion of Senate President Villar, there being no obiection, the Body suspended consideration

P

TUESDAY & WEDNESDAY, NOVEMBER21 a 2 2 . 2 0 0 6 74 1

SUSPENSION O F SESSION

Upon motion of Senate President Villar, the session was suspended.

It was 5:59 p.m.



ADDITIONAL CONFEREE

Senate President Villar manifested that Senator Osmefia is a member of the Senate panel in the Bicameral Conference Committee on the proposed Biofuels Act.


Upon motion of Senate President Villar, the session was suspended.

It was 6:Ol p.m.



SECOND ADDITIONAL REFERENCE OF BUSINESS


BILLS ON FIRST READING

Senate Bill No. 2516, entitled

AN ACT INSTITUTING REFORMS IN LAND ADMINISTRATION

Introduced by Senator Compaiiera Pia S. Cayetano

To the Committees on Environment and Natural Resources; and Ways and Means


AN ACT FURTHER STRENGTHENING VOLUNTARY ARBITRATION AS

THE PREFERENTIAL MODE OF LABOR DISPUTE SETTLEMENT, AMENDING FOR THIS PURPOSE ARTICLES 217, 260, 261, 262-A, 262- B, 263(G) AND ARTICLE 277(F), AND INCORPORATING A NEW ARTICLE 262-D OF PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, AS AMENDED

Introduced by Senator Jinggoy Ejercito Estrada

To the Committee on Labor, Employment and Human Resources Development


Upon motion of Senator President Villar, there being no objection, the Chair declared the session suspended until ten o’clock in the morning of the following day.

It was 6:08 p.m


At 10:23 a.m, Wednesday, November 22, 2006, the session was resumed with Senate President Pro Tempore Flavier presiding.


(Continuation)

Upon motion of Senator Pangilinan, there being no objection, the Body resumed consideration, on Second Reading, of House Bill No. 5794 (Committee Report No. 16O), entitled

AN ACT APPROPRIATING FUNDS FOR THE OPERATION OF THE GOVERN- MENT OF THE REPUBLIC OF THE PHILIPPWES FROM JANUARY ONE TO DECEMBER THIRTY-ONE, TWO THOUSAND SEVEN, AND FOR OTHER PURPOSES.

Senator Pangilinan stated that the parliamentary status was still the period of interpellations.

Thereupon, the Chair recognized Senator Drilon,

& Sponsor of the measure.

142 WEDNESDAY, NOVEMBER 22,2006

THE DAY'S AGENDA

Senator Pangilinan announced that in the day's session, the Body would consider the budgets of the following agencies:

In the morning:

PBCC) In the afternoon:

Development Budget Coordinating Committee

Department of Education - Office of the Secretary - National Book Development Board - National Council for Children's Television - Philippine High School for the Arts - DepEd School Building Program - Commission on Higher Education,

state universities and colleges.

He informed the Body that Senators Angara, Pimentel, Enrile and Lacson have reservations to interpellate on the DBCC budget.

MANIFESTATION OF SENATOR DRILON

Senator Drilon said that he has been informed that Secretary Rolando Andaya was in Palawan, NEDA Secretary Romulo Neri and Bnngko Sentrrrl ng Pilipinns Deputy Governor Diwa Gunigundo were attending separate meetings and Finance Secretary Margarito Teves was nowhere to be found. He said that while basic courtesy dictates that these officials should be present during the budget deliberations, nevertheless, he was still prepared to defend their budgets in their absence.

The Chair agreed to proceed with the period of interpellations, saying that Senator Drilon could answer any inquiries on the DBCC budget.

However, Senator Dangilinan expressed concern that doing so might send a signal to the officials of the Executive branch that they need not be present during the budget deliberations, even as a matter of courtesy. He suggested that the session first be suspended so that the Members could discuss the matter.

REMARKS OF SENATOR ANGARA

For his part, Senator Angara pointed out that the national budget is probably the most important document of any country, and every aspect of it is thoroughly discussed by writers, analysts and economists. He stressed that the budget is a guideline for the direction of a country and should

reflect the people's desires on how their money should be spent. He lamented that the Philippines is the only country wherein officials, who should be interested in the passage of the budget are not regularly present in many of the Senate sessions during which it is discussed. He added that of the many floor debates on legislative measures and issues of national concern, the discussions on the national budget are the least written about in media. He stated that in all his years in the Senate, he has yet to see a thorough discussion of the impact of the budget on aspects such as health, education and infrastructure that affect the overall well being of the Filipinos and as a consequence, he noted that many of the Members have failed to advise, inform and educate the people about the importance of the budget.

Senator Drilon acknowledged that, indeed, the General Appropriations Bill (GAB) is the most important piece of legislation, and it was for reason, he said, that he exerted efforts to have the budget hearings finished on time, with the Committee conducting daily hearings from 9:OO a.m. to 9:OO p.m. in the last three months. He also recalled Senator Enrile's concern about the constitutionality of having another reenacted budget for 2007. He added that Budget Secretary Andaya himself had noted there was a certain degree of direction in the committee report on the budget and both Secretaries Neri and Andaya were aware of the scheduled interpellations on the DBCC budget but had not given any indication that they would ignore the morning session. He hoped that the Body would understand his disappointment over the attitude of these department secretaries as the Senate had agreed on a timetable for the passage of the GAB such that he was present at the session hall at exactly 10 a.m.

Senator Angara pointed out that this was probably the first time that Congress would be passing a budget on time or even ahead of time. He noted that in the past five years, the budget was passed on time only twice, it was reenacted twice, and on the fifth time, it was reenacted during the middle of the year. He bemoaned that DBM officials have little regard for such a fundamental document. He lauded Senator Drilon for having worked hard on the GAB. He believed that it is more than just a matter of courtesy for the budget officials to be present during the budget deliberations because they should be involved and share insights of the debate that puts life and meaning to the dry statistics in the General Appropriations Act.#

I"

WEDNESDAY. NOVEMBER 22,2006 743



It was 10:35 a.m.

.RESUMPTION OF SESSION

At 10:38 a.m., the session was resumed

INQUIRY OF SENATOR LIM

Asked by Senator Lim whether the DBCC officials could have resented Senator Drilon’s decision to reduce the Unprogrammed Fund, hence, they did not come to the session, Senator Drilon clarified that he did not reduce the DBCC budget, and that these officials had, in fact, promised to submit specific details on the P30-billion item for infrastructure and social services program in the Unprogrammed Fund for the sake of transparency. He stated that he submitted the committee report on the budget even though the DBCC has not fulfilled its commitment but he hoped that the DBCC would do so before the budget is approved on Second and Third Readings. Hopefully, he said, this morning’s incident would not be used by the administration’s propaganda machine to blame the Senate for the delay in the passage of the budget as records show that for the first time after five years, the Senate is holding debates on the GAB in the middle of November. He lamented that the attitude of the officials of the Executive branch does not speak well of their desire to have the budget approved on time.

Senator Lim said that the DBCC should submit the required information as the Senate has the primary responsibility and duty to protect public monies.

Senator Pangilinan informed the Body that the session would be suspended until two o’clock in the afternoon to give DBCC officials time to come to the Senate and until then, action on the DBCC budget is deferred.



It was 10:44 a.m.


At 2:22 p.m., the session was resumed with Senate President Pro Tempore Flavier presiding.

At this juncture, the Chair recognized Senator Drilon, Sponsor of the measure, and Senator Angara for his interpellation.

Preliminarily, Senator Drilon acknowledged the presence of Secretaries Teves and Neri, and BSP Deputy Governor Gunigundo.


Senator Angara commended Senator Drilon for his timely and clear presentation of the budget.

Asked whether the country’s economy would grow with equity with the proposed 2007 budget, Senator Drilon replied that the Committee sought to redirect certain expenditure programs to better address the needs of the social services sector, particularly education and health, and thus achieve growth with equity.

Senator Angara said that looking at the budgets in the past two years, there was a palpable increase in appropriation for social services; in 2006, it increased by almost 15% over the previous year, and the increase in 2007 is 12.14%. He noted that the current year’s budget is about 44% over the 2005 budget and the 2007 budget is almost 16% over the 2006 budget. He asked whether the equity is largely achieved through spending on education, health and other social services and infrastructure. Senator Drilon replied in the affirmative, stating that the infrastructure budget for 2007 indicates an increase of about P33.8 billion over that of 2006 or a 68% increase, the highest since 2001.

Senator Angara asked the Committee to provide a breakdown of the specific infrastructure projects to determine where the money is going. Moreover, he observed that under the proposal, the budget to GDP, percentage-wise is about 12%, meaning, the national budget will contribute up to 20% to national income, which is way below the benchmark of 25%. Senator Drilon agreed.

Upon further query, Senator Drilon clarified that almost P4 billion was realigned for the construction of school buildings, P700 million to GASTPE, and P873 million for the creation of additional teaching and nonteaching positions.

& p

144 WEDNESDAY, NOVEMBERZZ, 2006

Senator Angara expressed hope that with double- shift classes and additional appropriation, Congress would make up for the shortfall in school classrooms. Senator Drilon agreed, saying that according to the DepEd, on a ratio of one classroom per 45 pupils, double-shift, an additional P4 billion is necessary to cover the 8,000-classroom gap.

That being the case, Senator Angara believed that the country’s spending on education would amount to 3.2% of the national income, and compared with Thailand which invests 8% on education, and Malaysia, 5%, the Philippines is indeed far behind. Senator Drilon agreed, pointing out that the situation could be attributed to the deficits suffered by the country which impacted on the education sector, among others. He said that the Committee was indeed detemiined to make up for next year by redirecting certain expenditures to the education sector.

Senator Angara pointed out that in the regime of scarcity, it becomes more urgent to prioritize and since education is the efficiency- and productivity- enhancing activity, Congress has to make a tough decision not to cut across-the-board but to increase, in fact, spending on those areas that would yield much greater return later on. Senator Drilon assured the Body that this has been done by the Committee in the 2007 budget.

Senator Angnra said that he cited the spending pattern on a comparative basis so that the Body would appreciate how low an investment the government is putting on education. While the DepEd states that the teacher-pupil ratio is 1 :45, in reality, it is 1:65, he said. Senator Drilon agreed, as he informed the Body that under the 2007 budget, 16,390 new teachers would be hircd compared to the President’s budget which allocatcd only for 10,000 positions. He said that this would improve tbe teacher-pupil ratio of 1:45.

Senator Angara noted that the Committee’s effort to catch up with the huge backlog was almost gargantuan but it was not enough to correct an almost decade-long neglect of education investment.

On the under-investment in health, Senator Angara noted that the share of the health sector in the national budget was 1 .S% in 2003; but under the 2007 GAB, it is only 1.36% and even less, taking into account inflation, real spending for health. Senator Drilon replied that the Committee redirected certain portions of the budget to augment the health

sector for which it has proposed an increase of P890 million. However, he expressed willingness to review this item and provide for an increase that could be accommodated in the spending program of the President.

Senator Angara disclosed that according to the Total Health Expenditure League annually published by the World Competitiveness Yearbook, the Philippines is No. 60 out of 61 countries, which is a great embarrassment. As a result of the huge under- investment in health, he said that the country has the dubious distinction of having the highest cluld mortality, that is 29 deaths in every 1,000 live births compared with Vietnam, 23 and Thailand, 26.

Senator Drilon stated that the Committee was aware of the statistics, adding that he has already cited the programs and coinpliance with conimit- ments under the millennium development goals. He pointed out that under the special provisions of the budget, specialized hospitals, medical centers and national govermnent hospitals of the Department of Health would retain their incomes, and upon recommendation of Senator Flavier, the portion of the income to be used exclusively for preventive and promotive public health services was increased from 10% to 30%.

As regards the estimate of the World Bank that 40% of the population have not seen a doctor or a health professional in their lifetime and that there is rampant malnutrition, Senator Drilon agreed, adding that 32.9% of children ages 6 to 9 are underweight, while 41% are under-height.

Senator Angara underscored the need to care for children during their formative years, ages 1 to 9, because, according to statistics, 24 out of 100 Grade 1 students would drop out before Grade 3.

On another matter, Senator Angara disclosed that according to the National Statistics Office (NSO), for the past 5 years, the top 10% of families earn about 20 times more than the bottom IO%, noting that this is the highest gap in income distribution in Asia because the top 20% controls more than half of the family income in the country, while the bottom 10% manages to earn 5%.

On whether the budget attempted to shorten the income gap, Senator Drilon stated that the Committee tried to address the issue of incomes in the rural 4.’

WEDNESDAY. NOVEMBER 22.2006 I45

areas through the budget of the Department of Agriculture that was augmented by P1.4 billion to finance post-harvest facilities, knowing that the improvements in the agricultural sector would contribute immensely to the GNP.

Senator Angara stated that malnutrition among children ages zero to five is prevalent in Bicol, Western Visayas, Northern Mindanao, Caraga, and Southern Mindanao; while malnutrition among children ages 6 to 10 is prevalent in Bicol, Eastern Visayas, Mimaropa and Caraga. He observed that except for Western Visayas, most of the regions that have high incidence of malnutritiou arc situated in the Pacific Coast; on the other hand, most of the infrastructure arc concentrated on the western side, in regions already fully developed like Central Luzon, Northern Ilocos, Pangasinan, Cebu, Zamboanga and Davao.

Asked if the geographical and nutritional inequities arc being addressed in the budget, Senator Drilon replied that according to Secretary Neri, the government is starting to address the inequity in Casibwran through development project.

On infrastructure development, Senator Angara asked on the rationale for building international airports in Poro Point and Tabaco, Albay when Laoag International Airport is two hours away from Poro Point; and Legazpi Airport is near Tabaco. Senator Drilon clarified that the Poro Point Airport is designed as the entry to Baguio, Pangasinan, and La Union for travelers from the People’s Republic of China, and apparently a consular office shall be established in Laoag.

Asked how much it would cost to build an international airport, Senator Drilon replied that it is P6 billion plus.

Senator Augara posited that the amount could create jobs and open up markets all over the country, thus, he found no reason why an international airport should be built in those areas.

Senator Drilon clarified that the existing runway of Poro Point, which was not designed as an international airport, and its passenger terminal would only be improved to accommodate bigger airplanes. He stated that although there is a P200-million allocation, the Tabaco International Airport is still being studied and according to Secretary Mendoza, DOTC was in the process of acquiring the site.

To Senator Angara’s suggestion that the Legazpi Airport be extended and modernized instead, Senator Drilon stated that the Tabaco Airport is intended to replace the Legazpi Airport which has its limitations because of its proximity to Mayon Volcano. He said that once vacated, the airport could be developed into a commercial area.

Senator Angara noted that the Naga Airport poses a hazard to pilots because it is improperly oriented and planes are often diverted to Legazpi, an all-weather landing site. He wondered why Mayon Volcano was being used as an excuse to construct a new international airport. Senator Drilon stated that there are technical reasons and the project was rationalized on the basis of the proximity of Legazpi Airport to Mayon Volcano which has caused prohlem.

Senator Angara said that prioritization is critical given the scarce resources. He underscored that what really counts is not so much adding or putting money into infrastructure but the way the government uses the money.

On the budget of the DepEd, Senator Angara noted the lack of allocation for the recruitment of teachers in key disciplines like science and mathematics even as he cited alarming statistics indicating that only 42% of general science teachers are science majors, 44% of biology teachers, 34% of chemistry teachers, and 20% of physics teachers are majors in their respective disciplines. As a consequence, he lamented that Filipino high school graduates and elementary schoolchildren fared poorly in science and math in domestic as well as international tests.

To the suggestion that a third of the budget for the recruitment of new teachers be channeled to recruiting teachers in these critical disciplines, Senator Drilon expressed openness to a special provision directing that a certain percentage of the new hirees must be science, biology, mathematics, chemistry and physics majors. He conceded that these uon-science majors teaching science subjects pose a grave concern to the quality of public school education.

Additionally, Senator Drilon informed the Body that DepEd has a budget of P940 million for human resources and training development, which represents an increase of about P360 million over the current year. He said that the money would be used to .p

146 WEDNESDAY. NOVEMBERZZ 2006

intensify the training of non-majors teaching English, science and mathematics and to build up a corps of staff of science and math supervisors which is a major program of DepEd for 2007.

On the statement that putting in additional funds for training might not be useful as DepEd’s absorptive capacity has limits, Senator Angara pointed out that the department can contract out its teacher training program to outside institutions that are competent and accredited like the UP and Ateneo. He suggested a special provision authorizing DepEd to do so, to which Senator Drilon agreed.

On another point, Senator Angara noted that of the 34 million Filipinos of school age - 6 to 24 years - 34% or 11.6 million are out of the formal school system which is an incredibly high number of uneducated, out-of-school youths. Asked whether the budget has a provision for the caring and education of these young Filipinos, Senator Drilon revealed that P85 million is allocated for alternative learning systems under the Bureau of Non-Formal Education and another PI45 million for MOOE for a total of about P230 million. Additionally, he pointed out that TESDA is tasked to look after the training of these out-of-school youths but he could not say whether or not it is actually responding to their needs. He agreed that this huge mass of young people who have no exposure to learning or any form of schooling is a scandal. But he expressed hope that these 12 million school-aged Filipinos could go back to school should adequate funds and facilities be provided the education sector.

Senator Angara posited that the Body could begin by providing for an institutional arrangement where these young people could be absorbed and taught job skills or plain literacy. He conceded that the task is daunting after decades-long neglect which saw the country dropping, in just five years, to No. 77 from No. 44 out of 117 countries in terms of competitiveness. He believed that this was due to the lack of technological innovation arising from the lack of grounding in science and technology.

Senator Drilon informed the Body that World Bank studies indicated that the country’s allocation for the education sector fell behind by about P26 billion for 2006 and 2007. He expressed hope that the Body could catch up and start trying to recover the quality of education that the Filipino youth enjoyed years back.

INTERPELLATION OF SENATOR DEFENSOR SANTIAGO

Preliminary, Senator Defensor Santiago sought leave to present a statement of difference between the budgets submitted by the President and the House, as she noted that the total new appropriations as requested by the President was raised by the House by P8.256 billion. She wondered how the Finance Committee has responded to the apparent violation of the Constitution, particularly Article VI, Section 25(1) which states that “[tlhe Congress may not increase the appropriations recommended by the President for the operation of the Government as specified in the budget.”

Senator Defensor Santiago read a summary of the items where the House has increased the appropriations for certain agencies (please see Annex).

In view thereof, Senator Defensor Santiago asked on the rationale for the increase in the budget considering the forecasted slowdown of the U.S. economy, the occurrence of the El Niiio next year, and the likelihood that the Philippine economy would not achieve the assumed real Gross Domestic Product (GDP) growth of between 5.7% to 6.5% in 2007.

Moreover, Senator Defensor Santiago asked on the revenue impact of a slower economy given that no new taxes were passed this year, as she pointed out that growth in revenues depends on the growth of the economy or the nominal GDP. Considering the real risk that the economy might slow down next year, she believed that the prudent thing to do is to reduce the budget as proposed by the President instead of the House proposing an increase in the President’s budget, an act that is both fiscally irresponsible and unconstitutional.

Senator Defensor Santiago said that if juris- prudence on “unconstitutional acts” were to be followed strictly, illegal contemplation does not exist as she pointed out a case when the Philippine Supreme Couit ruled-uoting the American Supreme Court-that an unconstitutional act does not produce any legal effect. Thus, she said, an unconstitutional act is a monstrosity that should be slain whenever it rears its ugly head.

In view thereof, Senator Defensor Santiago moved that the Body suspend any action or deliberation on

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WEDNESDAY. NOVEMBER 22,2006 141

the budget, which she believed is unconstitutional. She stated that if the Supreme Court decisions were applied, the Senate, in effect, would then be acting on the basis of a nonexistent document.

Senator Drilon confinned that, indeed, the House increased the New Programmed Appropriation by P8,256,367,000 which came by way of the realignment of the automatic appropriation for interest payments and debt servicing to the programmed appropriation on the assumption that interest rates would decrease next year. He shared the view that if the House version is passed, it could be declared unconstitutional, which is the reason why the Committee maintained the President’s budget submission rather than reduce it to allow government some spending authority and increase GDP from 5.7% to 6.5% as projected by the economic managers. He said that the World Bank bas revised its growth forecast for the countiy and certain agencies like Moody’s have upgraded the country’s credit rating that could result in favorable interest rates and extra funds for the purpose of maintaining the programmed deficit.

Senator Defensor Santiago said that next time, the Secretariat should first produce a statement of difference between the President’s proposed budget and the House version prior to the holding of any hearing to ensure that the Senate would be working on a budget proposal that has complied with the pertinent constitutional provision.

Senator Drilon stated that shortly after the Senate received a printed copy of the House version, the Conxnittee came up with a statement of differences which was presented in one of the hearings attended by Finance Secretary Teves, Budget Secretary Andaya, NEDA Secretary Neri, BSP Deputy Governor Gunigundo, and DBCC officials.

Asked how the constitutional provision should be interpreted, Senator Drilon expressed the view that Congress should not exceed the programmed appropriation because this could result in a higher deficit if the fiscal program of government is substantially altered. Senator Defensor Santiago said that it should be put on record that changes in currency rates can be used as a subterfuge to go around the constitutional provision prohibiting increases in the budget.

Asked on the rationale behind the incorporation of the P5-billion school building program for

elementary and secondary schools in the DepEd- OSEC budget rather than just inserting the item under the DepEd’s school building program, Senator Drilon explained that this is a special provision which allows the DepEd Secretary more flexibility in addressing the need for the construction of 8,000 additional classrooms.

On whether the DepEd could wipe out the backlog in one year and whether it would not be better to allocate part of the money for teacher training since a large part of the desired outcome in education performance depends on the quality of teachers, Senator Drilon said that the DepEd officials have given the assurance in terns of the agency’s absorptive capacity as far as the school building and teacher training programs are concerned, adding that the Committee has allocated nearly P1 billion for teacher training.

On another matter, Senator Defensor Santiago noted that the number of state colleges and universities (SUCs) has increased from 60 to 113, the breakdown of which is as follows:

NCR - 8 Ilocos - 5 Cordillera Administrative Region - 6 Cagayan Valley - 5 Central Luzon - 13 Calabarzon - 5 Mimaropa - 6 Bicol - 8 Western Visayas - 11 Central Visayas - 5 Eastern Visayas - 11 Zamboanga Peninsula and ARMM - 9 Northern Mindanao - 7 Davao - 4 Main SOCCSKSARGEN and AFWM - 6 Caraga Administrative Region - 4

On whether he could provide data on how many SUCs were created during the Ramos administration, Estrada administration, and the Arroyo administration, and the reasons for the proliferation of SUCs, Senator Drilon said that he would do so at the soonest possible time.

Asked on the state policy on the creation of new SUCs, Senator Drilon stated that Senate President Pro Tempore Flavier is better equipped to enlighten the Members on this matter.

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748 WEDNESDAY, NOVEMBER22,2006

At this point, the Senate President Pro Tempore stated that there are 17 guidelines to be followed in the creation of SUCs, adding that because of the strict implementation of these guidelines during his chairmanship of the Committee on Education, A r t s and Culture, not a single state university or college was created.

In closing, Senator Defensor Santiago requested that the increases in the House version over the President’s budget submission be reflected in the Journal and that a copy of the data be distributed to the Members the following day.

INTERPELLATION OF SENATOR RECTO

Senator Recto expressed support for Senator Drilon’s initiatives towards growth with equity and with respect to increasing the budgets of the DepEd and the other departments.

Asked by Senator Recto on the total budget that the Committee has recommended, Senator Drilon replied that the Committee has recommended the following:

Programmed appropriation P 574,112,418,000

Automatic appropriation 552,226.582.000

Total : PI ,126,339,000,000

On the other hand, he mentioned the unprogrammed appropriation in the amount of P67,008,479,000.

Likewise, pursuant to the requirement of Republic Act. No. 7638, he said that the Committee also recom- mends the budgets for the following agencies:

NEtional Electrification Administration (NEA) P 5,655,287,000

National Power Corporation 220,358,036,000

Philippine National Oil Company 6.034.892.000

Total : P232,048,215,000.

Senator Recto pointed out that based on the committee report, the Senate would be approving a total budget of P1,425,000,395,694.00. However, he noted that the Committee recommended a cut of P1,325,000,000 in the NEA appropriation. Senator Drilon explained that what the Committee cut in the NEA appropriation was the increase in the House

version, so that, in effect, the Committee merely reverted to the budget submission of the President.

Senator Recto commented that it is important for the public and the media to know that the Senate would be approving a spending authority of P1,425,000,000,000. Senator Drilon agreed.

Asked how the cut in the NEA appropriation would affect the countryside electrification program, Senator Drilon pointed out that the P1,325,112,000 which the Committee deducted from the NEA appropriation was for the rural electrification program @SO0 million) and corporate borrowings (P500 million) but NEA officials themselves were unaware of the purpose of the items that were in fact not in their original budget submission.

However, Senator Recto reasoned that if resources were available, the P800-million appropriation for rural electrification would benefit a number of barangays without electricity which could spur countryside development. He suggested that the Committee take a second look into the matter to determine if there was basis in the decision of the House to provide for the increase. Senator Drilon gave the assurance that the Committee would consult NEA on the matter. He pointed out that there is a P1,102,400,000 appropriation for rural electrification.

Still on the national government budget, Senator Recto said that if the unprogrammed budget, the programmed budget and automatic appropriations are added, the real total spending authority that Congress would give the President is in the amount of almost P1.2 trillion and not P1.126 trillion. Senator Drilon pointed out that the unprogrammed portion of the budget is the standby authority to spend if the revenue and tax collections are higher than the programmed budget and if loans are available to fund unprogrammed items.

To the observation that P30.5 billion appropriation is the biggest item in the unprogrammed portion, Senator Drilon said that the DBM has, in fact, submitted a document, a copy of which would be provided Senator Recto, that lists the infrastructure projects and social programs under this item.

Asked if it would be illegal for the President to spend more than the P1,193,000,000,000 national budget it submitted to Congress, Senator Drilon - replied in the affirmative. +.

WEDNESDAY. NOVEMBER22) 2006 749

Senator Recto disagreed, pointing ou: government would not actually pay the debts but would simply roll it over. He that the difference between the P89 bill

As to the obligations and the national government, out that based on the DBM to the

that the principal surmised on gross


Upon motion of Senator Drilon, the seksion was suspended.

It was 4:20 p.m.


At 4:20 p.m., the session was resum4d.

In reply to a query, Senator Drilon stated that the programmed interest payment for 2006 was P340 billion, but it would likely be P315.162 billion.

Senator Recto argued that the P25 billion savings cannot be used to fund the unprogrammed projects for 2007. Senator Drilon agreed, adding that the unprogrammed fund is a standby authority. He indicated that the specifications that were just submitted would be included in the Senate version of the budget so that should the Unprogrammed portion is funded, the projects would have already been identified.

Upon query, Senator Drilon informed the Body that the net foreign borrowing is P125.8 billion, net repay- ment is P9.3 billion, and net financing is P! 15 billion.

Senator Recto remarked that the faulty macroeconomic assumption is that the projected interest payment would be P340 billion when, in fact, there was a P25-billion saving on interest expense in 2006. He pointed out that the borrowing is net of P220 billion and the money could be used to finance the unprogrammed projects for the past years as well as for 2007.

Going to automatic appropriations, Senator Recto asked whether there is any assurance that the interest payment in 2007 would be P328 billion as it is difficult to determine exchange rates. He asserted that the wrong macroeconomic assumptions on automatic appropriations, specifically interest payments, might deprive the public of social and defense services, among others, that these appropriations could have financed instead. He posited that the House of Representatives did something illegal when it reduced interest payment based on the prevailing interest rates to free some of the resources that are within the authority of the President to spend.

On the matter of over-appropriating for interest payment, Senator Drilon clarified that even if it is not included in the budget, there is still authority to pay interest and service debts. He argued that there is also some good in having a conservative deficit program as long as the spending authority is not suppressed. Senator Recto agreed, as he pointed out that it is the duty of a legislator to review and study the macroeconomic assumptions and, at times, reduce interest payments and automatic appropriations, and using sound judgment, realign them to

& program expenditures.

P


Relative thereto, Senator Drilon recalled a time when the Executive implicitly approved the realignment of interest payments to program expenditures that effectively increased the budget. He bared that in one of the committee hearings, the economic managers indicated that they have not consented to an increase in the budget. He stated that the niacro- economic assumptions govem both the revenue and expenditure programs and if the peso appreciates, revenue collections would also be affected. It is for this reason, he said, that macroeconomic assumptions are relied upon in preparing the budget. Senator Recto agreed but insisted that interest payment is a more exact figure. He argued that given the macroeconomic assumptions of 6% GDP growth and 5% inflation, the expected revenues should grow by 11%. But he questioned the projected increases of 16% in BIR collection and 19% in BOC collection.

As Chairman of the Committee on Ways and Means, Senator Recto said that he was looking for other means to raise revenue and after imposing higher taxes on the public, it is his moral obligation to ensure that the public get their money’s worth and not be shortchanged of the needed services and economic support. He said he was aiming for more opportunities and he wanted the 85 million Filipinos to benefit from the budget.



It MUS 4:3 7 p m .



Upon queries, Senator Drilon stated that the total debt stock as of 2005 was P4.474 trillion and the interest rate, on the average, on both domestic and foreign borrowings is 8%; and on the items under automatic appropriations, the PI 83 billion Internal Revenue Allotment is about 30% of he budget and the retirement and life insurance premiums (RLIP) are premiums to be paid to CSlS by government employees in 2007. He explained that the 2006 supplemental budget has a P3.2 billion allocation for premium payments from July 1997 to December 1998 but the P14.9 billion for premiums of government employees to be paid in 2007 was presented as part

of the Personal Services (PS). Thus, he said that the RLIP is part of the PS of the different agencies under the programmed funds.

Asked whether the national government or its employees have any arrears in their contribution to the GSIS or Pag-IBIG, Senator Drilon said that since this debt is estimated at P6.5 billion to P7 billion, the DBCC has requested an automatic appropriation as a special provision in the budget.

Asked whether the retirement benefits of government employees would be affected if these contributions are not remitted, Senator Drilon replied in the affirmative. He noted that the 2007 budget includes P250 nullion for GSIS premiums which were collected by officials of the Autonomous Region in Muslim Mindanao (ARMM) in the previous administration but were not remitted to the GSIS. He agreed that the officials concerned should be jailed, adding that the Department of Justice is conducting an investigation on the matter. Moreover, he stated that the P14.9 billion is currently owed by the national government to eniployees that it is willing to fund and that the P6 billion is an earlier debt.

Senator Recto suggested that the P6 billion be included as an automatic appropriation, as he pointed out that it is unfair to deprive retiring employees of their full benefits because the government failed to pay its contributions. Senator Drilon agreed.

Asked about the P14.2 billion special account under automatic appropriations, Senator Drilon said that this is allocated to agencies, such as the Ninoy Aquino International Airport (NAIA), SUCs, Department of Foreign Affairs, and government hospitals, which realized income in the course of their operation and are allowed to use the same by virtue of the provisions of the General Appropriations Act.

As for the net lending of P9.1 billion, Senator Drilon clarified that it is for advances made by the national government to government-owned and - controlled corporations (GOCCs) that cannot meet their obligations.

Asked whether the amount represents debts of the GOCCs, Senator Drilon replied in the affirmative, adding that the government has assumed debts covered by sovereign guarantees.

Asked to name the government corporations that would be provided assistance through the P9.1 billion y

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WEDNESDAY, NOVEMBER 22,2006 75 1

appropriation, Senator Drilon cited the National Food Authority (NFA) as the biggest beneficiary. However, Senator Recto pointed out that the NFA does not have a debt but owes the Bureau of Customs taxes on rice imports. Senator Drilon said that he would provide Senator Recto with a list of the GOCCs that would benefit from the net lending appropriation.

Senator Recto asked how much the NFA is in debt.



It was 4:48 p.m.


At 4:50 p.m., the session was resumed

Senator Drilon stated that while he does not have the details for the 2007 allocation, the NFA topped the list of government corporations with contingent liabilities in 2006, with a P6.3 billion debt, followed by the National Power Corporation-Casecnan with P3.4 billion.

Upon further queries, Senator Drilon affirmed that net lending, as well as tax refunds, such as the P456.5-million refund in 2005, was included in the automatic appropriations in the past. He said that the BIR determines the amount of tax refunds.

Senator Recto believed that the P750 million set aside annually for tax refunds was taken from thin air and should actually be bigger since VAT refunds from a single company could virtually make up for the entire amount. He suggested that the finance secretary and BIR commissioner explain how the DBCC came up with P732 million. Senator Drilon said that BIR estimates have been included in the budget since 1995.

As for grant proceeds amounting to P556 million, Senator Drilon explained that it is an appropriation cover for grants or foreign donations and an author- ization for government to spend the amount for specific projects. He said that he would provide Senator Recto with a list of the projects under this category.

Asked what pension being referred to in Republic Act Nos. 2087 and 5059 amounting to P331,000, Senator Drilon said that this refers to pension benefits for spouses of former presidents.

On the suggestion to include, for purposes of transparency, the item on landowners’ compensation in the automatic appropriations, Senator Drilon said that as soon as the Committee receives the allocation proposal, it could be included in the special provisions. Senator Recto pointed out that since these are bonds, the interest rates and the maturity would be specified.

Senator Recto noted that deviating from her earlier practice of submitting a budget based on appropriations for the previous year, the President submitted a net 2007 budget to Congress for the first time. He asked how deliberations on the 2007 budget could be carried out when the 2006 numbers are the same as those of 2005. Senator Drilon replied that precisely the varying standards in the figures presented by the different departments were a problem during the budget hearings. He explained that some departments indicated the additional realignments given to them by the President through the augmentation of certain portions of the budget, while others presented an “adjusted 2006 budget,” in other words, the 2006 National Expenditure Program (NEP) was actually presented to the Committee.

At this j unc ture , Senator Pangi l inan relinquished the Chair to Senate President Pro Tempore Flavier.

Senator Recto admitted that it is difficult to compare the reenacted 2006 budget, taking into account the supplemental budget, and the 2007 budget. Senator Drilon agreed, saying that the Committee proceeded with the review based on what the different agencies/ departments presented.

Senator Recto surmised that the difficulty lies also in the staffing patterns. Senator Drilon agreed, adding that matters were complicated by the fact that a supplemental budget came in towards the last three months of the year, and the budget submission did not take this into account.

Asked on the increase in the 2007 budget over the 2006 budget, Senator Drilon cited the following data even as he admitted the difficulty in answering the question given the problems that confronted the -

P A4 Committee:


+ +

Total obligation for 2005 - P947.5 billion;

Budget Expenditure and Sources of Fund (BESF) or the NEP for 2006 - P1.053277 trillion; and

Total obligation (current) - PI ,126 trillion. +

Senator Recto noted that the increase was only 6.9% or P73 billion based on the NEP for 2006. He stressed the importance of knowing where the P73 billion was allocated to determine the quality of spending. Apparently, he said, the President decided to simply allocate the P73 billion as follows: P28 billion to PS, P39 billion to MOOE, PI0 billion to capital outlay and P17.5 billion to IRA. Senator Drilon emphasized the need to qualify the figure PI ,0532 trillion based on the 2006 NEP which was never approved.

That being the case, Senator Recto observed that the allocation did not go to infrastructure or any other quality spending to improve the competitiveness of the economy when, in fact, government taxes the public supposedly to ensure sustainable growth and reduce poverty. He asked why only PI0 billion of the P73 billion was allocated for capital outlay. Senator Drilon opined that it is more than PI0 billion considering that the 2006 capital outlay was less than P106 billion. He recalled that the Body was still debating on the 2006 budget when the 2007 budget was prepared, and it was assumed that the 2006 budget would be approved but, unfortunately, it was not.

Senator Recto argued that the increase is P200 billion because, technically, the budget for 2006 was roughly a trillion (P950 billion budget of 2005 plus P46.9 million supplemental budget) and the 2007 budget is a little less than P2 trillion. He asked how this increase was programmed. Senator Drilon replied that the staff would suhmit the requested data at a later time.

On a related matter, Senator Recto asked about the fixed cost of the budget - employees’ salaries, automatic appropriation, MOOE-related expenses like rent, electricity, gasoline, and the like. He said that the variable cost is determined by the priorities of the department secretaries. He expressed support for Senator Drilon’s effort to comply with the country’s commitments to the United Nations and more iniportantly, to the people to reduce poverty incidence by 2015, improve access to education, health care and food; and establish peace and order.

Asked how the President allocated the variable cost, Senator Drilon replied that by expense class, the President, for instance, has no discretion over PS, debt service, IRA, and net lending. But Senator Recto argued that the President has discretion over net lending because she could ask the NFA not to import rice and pay taxes to the BIR. Senator Drilon stated that there are portions in the budget in the form of sovereign guarantees and contingent liabilities over which the President’s discretion to spend is limited. He said that a certain portion of the MOOE is also nondiscretionary. He disclosed that per DBM records, the actual nondiscretionary fund in 2005 was P776.589 billion consisting of interest payments, internal revenue allotments, PS and MOOE including rent, utilities, communications, supplies and materials; the discretionary portion was P170.9 billion. For 2007, he said that the nondiscretionary h n d is P898.022 billion and the discretionary fund is P228 billion, or roughly P300 billion, including the unprogrammed amount of P67 billion.

Senator Recto stated that while the submission during the Committee deliberations was an increase of P73 billion, it was actually P200 billion. He said the administration has P300 billion to spend based on policy directions. He asked for a breakdown of the P300 billion.



It was 5:21 p.m.


At 5:29 pm., the session was resumed.

Senator Drilon stated that the different departments submitted budgets based on the MTPDP, the bible for budget allocation in the next several years, and the allocations were made by the DBM; the national budget was then presented to the Cabinet and the President for approval; after it was approved, it became part of the NEP that was submitted to Congress.

Senator Recto asked whether the P300 billion budget was presented to the President in a way that enabled her to fund the different priority programs she wanted to undertake. Senator Drilon stated that there are continuing infrastructure projects that have $V

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WEDNESDAY, NOVEMBER22,2006 753

to be funded and there is a discretionary fund in the budget. However, he admitted that the Committee was unaware of how much was allotted to what projects and it would endeavor to get the data.

On another matter, Senator Recto observed that P200 billion had been added to the previous year’s budget. He asked how the President would spend the money when her administration intended to have a balanced budget by 2008 in the process of which he hoped the govemment would not crowd out the services needed by the public. He also noted that the programmed deficit for 2006 is PI25 billion but the govemment has borrowed more than the deficit to have additional cash on hand.

Asked how the government could have a programmed deficit of PI25 billion when the declared deficit as of today is only P56 billion, Senator Drilon stated that the government underspent P40 billion as of October 2006. He said that the failure to pass the budget limited the spending authority of the President.

Senator Recto concluded that the government was having a difficult time spending all the money since the treasury had borrowed more than the deficit. The easiest way to spend the money, he posited, is to increase the salaries of government employees.

Senator Drilon attributed it more to the lack of spending authority and compliance with the procurement law. He said that these resulted in gaps from the time the funds were available to the time they were supposed to be spent.

Senator Recto stressed that if there is a problem with absorptive capacity, there is no point in appropriating an additional P200 billion and that, in fact, the Senate could cut the budget by P65 billion and have a balanced budget in 2007. He wondered if the government was raising false hopes in the people who expected more infrastructure projects and better social services.

Rather than cut the budget by P65 billion, Senator Drilon said that he would prefer that the DBM and other agencies institute measures to improve their absorptive capacity and be given spending authority.

Senator Recto stressed that the government already had a problem with its absorptive capacity when the NEP showed unobligated allotments of P182 billion in 2005, and P159 billion in 2006.

Senator Drilon expressed the view that the revenue outlook for 2007 should provide the incentive for the bureaucracy to use its spending authority. He observed that the debates on the budget in previous years were on how not to exceed the program deficit, not on why the programmed deficit is not being met. He believed that the President should whip the bureaucracy into line in order to improve its absorptive capacity as Congress, at the end of the year, has the responsibility to review how governance has improved and to call to task those who failed to execute the budget because of inefficiencies.

Senator Recto agreed, noting that with the population growth at 2.5% and no population program in place, the population would double to 170 million in 25 to 30 years, which means that the government would have to double its infrastructure and services in order to cope. He said that he would not want Payatas to be the Mt. Everest in Asia or EDSA to become the biggest parking lot in the world.

On another matter, Senator Recto supported all the objectives of the budget to make a difference in the lives of 85 million Filipinos. He noted that three million Filipino households experience hunger, 10.8 % of the population live below US$I a day while 41% live below US$2 a day. Like Senator Drilon, he wondered how the nation would fare in the 2lSt century if millions of its citizens have no access to primary health care.

Replying to further queries, Senator Drilon informed the Body that the government hopes to create one million jobs a year although this target was not met in the previous years. He estimated that of the 800,000 new entrance into the workforce every year, only 750,000 are absorbed, hence, unemployment rate remains constant at 11.4%. But he expressed hope that with the creation of one million jobs a year between now and 2010, eventually the unemployment rate would go down and the country would be able to meet its millennium development goals. He said that the government hopes to reduce poverty incidence by 2% next year,

Moreover, Senator Drilon hoped that with the proposed increase in the infrastructure budget, employment would be generated and the increase in the budget of the Department of Agriculture would address poverty incidence. He disclosed that the total infrastructure budget is P162.9 billion or 2.43% of GDP; of the amount, P83.8 billion would come from ~

754 WEDNESDAY. NOVEMBER22.2006

the national government, P35.2 billion from the GOCCs, and P43.8 billion from the LGUs. Upon query, he affirmed that infrastructure projects might be funded from government borrowings.

Senator Recto asked how the DBM determines the LGU contribution even as he disagreed that 20% of the IRA goes to infrastructure. He pointed out that 20% of the IRA actually goes to the development fund which includes economic and social services and other types of expenditures. He contended that the DBM was not accurate in its figures because, in reality, only 60% of capital outlay goes to infrastructure and the rest is used to purchase vehicles and computers, among other things.

Relative thereto, Senator Drilon disclosed that the LGUs would receive another P11 billion aside from the PI83 billion IRA allocatioii in 2007. He agreed that the multiplier effect of infrastructure projects is more in theory than in actuality, so infrastructure spending is an area which needs closer examination and supervision.

Senator Recto expressed support for the hiring of 16,390 teachers, P4 billion in school buildings, and P200 million increase in the PGH budget. However, he asked why UP is still being given PI42 million when it was allocated P300 million in the supplemental budget, while other state universities like the Mindanao State University and the Polytechnic University of the Philippines have no additional allocations. Additionally, he said that UP is developing, together with Ayala Corporation, 37 hectares of its property which could bring in billions of pesos to enable the university to fund its own development. He stated that it would be worth knowing what UP would do with all that money.

Senator Drilon explained that P51 million in the UP allocation would fund scholarships in the College of Engineering and the balance would go to the construction of a science building. But he conceded that the other SUCs should also be provided with additional resources. He expressed openness to look into the matter at the appropriate time.

Asked if he would rather have a school nutrition feeding program than a rice-for-families program, Senator Drilon replied in the affirmative, disclosing that the House, which was of the same view, inserted a special provision that requires the feeding program be done within the school premises.

Expressing support for the proposal, Senator Recto likewise suggested the insertion of a provision which shall require the local sourcing of both the rice and milk to be used in the school-feeding program. Senator Drilon expressed willingness to accept the proposal at the proper time.

On another matter, Senator Recto lauded the desire of the President to increase the budget for post-harvest facilities and the additional budget of P890 million for health.

Asked on the reason for the P4.1-billion increase in the pension and gratuity fund, Senator Drilon replied that the amount, which was reduced by the House, was simply restored by the Committee.

MANIFESTATION OF SENATOR PIMENTEL

At this juncture, Senator Pimentel informed the Committee that he was postponing his interpellation until the following day because he would be attending the bicameral conference on the Biofuels Act. Senator Drilon requested the suspension of the questions on the DBCC so that the Body could make use of the time of the resource persons from the DepEd who were present.

Senator Recto, however, expressed the desire to pose a few more questions on the DBCC before proceeding to the bicameral conference, and manifested his desire to ask some questions on the DepEd at another date.

INTERPELLATION OF SENATOR RECTO (Continuation)

Going back to the matter on the pension and gratuity fund, Senator Drilon explained that this fund would be used for the payment of pension, retirement and terminal leavc benefits for the civilian sector and for the proposed rationalization program, per Executive Order No. 366, series of 2004. He affirmed that this is separate from the GSIS benefits received by governnient employees.

On the reason for the P181 million cut in the DENR budget considering the government’s commitments to the millennium development goals as regards water sanitation, sewerage system and other projects, Senator Drilon said that this is partly due to the effort to revert to the NEP as originally submitted. He explained that the Committee deleted P25 million +.

WEDNESDAY, NOVEMBERZZ, 2006 755

for the promotion of marine biodiversity, which was part of the increases in the House version; and P114.720 million for the pilot implementation of the Pampanga River and the Bicol River Basin because the project’s current P500 million budget has not been utilized. Senator Recto agreed that the cuts were fair, saying that if the implementors have a weak absorptive capacity, they could not spend the appropriations for the previous year. However, he manifested his desire to introduce an amendment so that some p r o p m s for sanitation could be undertaken. Senator Drilon expressed willingness to consider the amendments at the proper time.

In reply to further queries, Senator Drilon explained that the cuts in the budgets of the Depart- ment of Finance, the Office of the DOF Secretaly, BIR, and Bureau of Customs were the House insertions with respect to confidential and intelligence funds. Stating that he was not against the granting of confidential and intelligence funds to the agencies, Senator Recto expressed support for the initiatives of the BIR and the Bureau of Customs.

Senator Drilon said that the Committee was awaiting a proposal for the purchase of computers and other equipment for the said agencies. He assured the Body that the funding would be allocated as soon as these agencies submit their proposals, in support of efforts to improve the collections of the BIR and Bureau of Customs.

On another matter, Senator Recto expressed concern over the P592 million cut in the DILG budget and the P310 million cut in the PNP budget, pointing out that security is also a paramount consideration aside from health, education, agriculture and infrastructure. Senator Drilon explained that the Committee deleted only the House insertions for the establishment of an Emergency Response Network, Barangay Anti-Drug Abuse Councils, Barangay Human Rights Center, Barangay Peace and Order Committee, Gabay sa Mamamayan Action Center and Barangay Health Emergency Response Team.

Expressing the view that such types ofprograms should indeed be deleted, Senator Recto proposed to amend the budget by providing funds for the hiring of additional policemen to address the ratio of one policeman per 1,500 population. Senator Drilon disclosed that during the committee deliberations, PNP officials had been informed that there was no actual increase in the agency’s budget because any increase

would only cover inflation. He agreed to an increase in the DILG budget as long as this is a productive increase and not as MOOE for the establishment of a Barangay Human Rights Center and the like.

In reply to other queries, Senator Drilon explained that the P40-million cut in the budget of the Public Attorneys’ Office (PAO) is the House insertion to the agency’s PS, MOOE and capital outlay, particularly for “provision of legal services to indigent persons in civil, administrative and criminal cases.” Senator Recto said that he would like to discuss the matter with Senator Enrile who is the author of the PA0 bill, stressing the need for additional legal assistance to indigents.

On the TESDA budget, Senator Drilon explained that the P200 million was transferred to the CHED also as a scholarship fund. He revealed that the TESDA administrator realigned the current budget to the central office and reallocated it to the regional offices according to his whim. He said that the proposed P200 million budget is in addition to its current P200 million for scholarships.

On whether a change in leadership at the TESDA would be an effective solution to the problem, Senator Drilon explained that this could not be done in the GAA.

With respect to the P6.6 billion cut in the DPWH budget, Senator Drilon said that this pertains to the House insertion which, in effect, reduced the programmed foreign assistance projects, realigned the budget to the locally funded projects, and assigned that portion of the funded foreign projects in the unprogrammed portion. Senator Recto said that the matter could be discussed during the deliberations on the DPWH budget. Nonetheless, he expressed support for the improvement of roads and bridges, flood control program and other projects because these are neutral investments, which can be used by the service industry and other sectors as well.

Senator Recto said he would like to find out the rationale ofthe House for transferring P2 billion from foreign-assisted projects to the unprogrammed fund, adding that this has been done in the 9th and loth Congresses. He said that he would look into the DPWH budget at the proper time.

Noting that the DOST budget has a P209 million cut, Senator Recto expressed concern that this +


might have been taken from the budget of PAGASA, an agency that needs sufficient resources for the efficient performance of its tasks. Senator Drilon gave assurance that there was no change in the PAGASA budget, adding that the Committee has allowed the purchase of a Doppler Weather Radar which shall enable the agency to predict the amount of rainfall.

As regards the P1.3 billion cut in the DSWD budget, Senator Drilon stated that the Committee believed that programs like the Tindnhnn Nntin, and rice distribution and lending should not be undertaken by the DSWD because it is not equipped to handle credit investigation and collection. However, he said that since the Small Business Guarantee and Finance Corporation did not accept the Tindnhnii Nntin as equity, the Committee had no choice but to delete the PI60 million budget for this particular program. Nonetheless, he stated that the Committee would be willing to reinstate this item when it finds the appropriate agency mandated to handle the credit program.

Senator Recto said that he does not have a problem with respect to the credit program but he believed that the DSWD’s rice distribution program to help the poorest of the poor is a noble program, considering the high incidence of malnutrition in the country. Senator Drilon clarified that the PI billion shall be used to purchase rice only for the DSWD’s pre-school program for malnutrition.

Senator Recto stated that this particular program, which he conceptualized with former Secretary Soliman, was supposed to address malnutrition and hunger in the countryside, adding that the DSWD did very well in implementing this program under the leadership of Secretary Soliman. He said that he feels very strongly that this program should be continued even under a new project which may be called “rice program for the indigents” to help the three million Filipino households experiencing hunger. Senator Drilon said that the Body could revisit this matter at the appropriate time.

With respect to the DOTC budget, Senator Drilon stated that there is a P234 million cut pertaining to a number of airports, an item that was inserted in the House version; and a P200 million feasibility study for railway construction in Panay, Cebu, and Mindanao. He pointed out that the Panay project is not economically viable according to the NEDA, and

the railway involved is not owned by the national government. He said that the DOTC Secretary has agreed to realign the funds to the PNR for the improvement of its operations, which Senator Recto supported.

Asked why there are cuts in the budgets of the Philippine Drug Enforcement Agency and the Philippine Sports Commission, Senator Drilon said that these cuts pertain to the items inserted in the House version, which includes the P8.2 billion budget for the repair of the Philippine Sports Arena. Senator Recto suggested that the items be discussed when the budgets of the agencies are called for consideration on the floor.

On another matter, Senator Drilon said that the P344.6 million cut in the ARMM budget pertains to the items inserted in the House version, and the P250 million for the GSIS that was transferred to another item in the budget.

With respect to the DOE budget, Senator Drilon stated that the Committee deleted the P800 million budget for the item on the budgetary support to government corporations for contingent liability and the National Electrification Administration, which is among the items inserted in the House version, to return the funding to the national expenditure program as submitted by the President.

Regarding the DAR budget, Senator Drilon informed the Body that the budget for the Tzilny sa Pnngulo program was transferred to the DPWH which implemented all the previous Tulny sn Pangdo projects; however, the DAR would still dictate the location where bridges would be constructed.

Asked whether there is a P1 billion cut in the DepEd’s school building program, Senator Drilon stated that the PI billion from the DepEd proper’s budget for the school building prograni was only transferred to the DepEd’s budget for the same program to make it P2,760,000,000, so that there is flexibility in the DepEd budget in terms of addressing the acute classroom shortage in some areas. Senator Recto stated that he would like to discuss the matter with the DepEd officials at the proper time.

In summary, Senator Recto said that the Senate is appropriating P1.4 trillion; the President would have discretionary resources for programs and priority 4

P

WEDNESDAY, NOVEMBER 22,2006 757

projects amounting to roughly P3 billion; and that it is possible for the Arroyo administration to over- appropriate for interest payments. He requested the DBM to furnish him with the information on how the Executive would apportion the budget to detemiine whether there is quality spending. He believed that it is the prerogative of Congress to look at the macroeconomic assumptions submitted by the Executive, and make adjustments accordingly. He expressed support for the Committee’s initiatives and objectives, adding that he would be willing to work with Senator Drilon to make the budget more responsive to the needs of the people.



It was 6:39 p.m,


At 6:44 p.m., the session was resunied.

NEXT DAY’S AGENDA

Senator Pangilinan informed the Body that the session would resume at ten o’clock in the morning of the following day and the budgets of the following agencies would be considered:

In the morning:

Development Budget Coordinating Council (DBCC)

Department of Education (School Building Program)

Commission on Higher Education State Universities and Colleges Department of Health Commission on Audit

In fhe afternoon:

Department of Agrarian Reform Agrarian Reform Fund Department of Science and Technology Department of Environment

and Natural Resources Department of Labor

and Employment

Senator Pangilinan said that Senators Enrile, Lacson, Pimentel and Biazon have made reservations to intepellate on the DBCC budget.


Upon motion of Senator Pangilinan, there being no objection, the Body suspended consideration of the bill.

THIRD ADDITIONAL REFERENCE OF BUSINESS



Letter from the Secretary General of the House of Representatives, informing the Senate that on 14 November 2006, the House of Representatives elected Representatives Suarez, Noel and Chipeco as additional conferees to the Bicameral Conference Committee on the disagreeing provisions of House Bill No. 4629, entitled

AN ACT MANDATING THE USE OF BIOETHANOL OR ETHYL ALCOHOL AS TRANSPORT FUEL AND SUP- PORTING THE DEVELOPMENT AND USE OF OTHER BIOFUELS, ESTABLISHING FOR THE PURPOSE THE NATIONAL BIOFUELS PRO- GRAM, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES,

and Senate Bill No. 2226, entitled

AN ACT TO DIRECT THE USE OF BIO- FUELS ESTABLISHING FOR THIS PURPOSE THE BIOFUEL PROGRAM, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

To the Committee on Rules

Letter from the Secretaly General of the House of Representatives, informing the Senate that on 15 November 2006, the House of Representatives concurred with the Senate amendments on House Bill No. 4487, entitled

AN ACT GRANTING THE MINDANAO JOCKEY AND COUNTRY CLUB, INC., A FRANCHISE TO CONSTRUCT, &’

758 WEDNESDAY & THURSDAY, NOVEMBER 22 & 23,2006

OPERATE AND MAINTAIN A RACETRACK FOR HORSE RACING IN DAVAO CITY

To the Archives

COMMITTEE REPORT

Conmiittee Report No. 161, prepared and submitted by the Committee on Urban Planning, Housing and Resettlement, on Senate Bill No. 2518, with Senators Biazon and Mar Roxas as authors thereof, entitled

AN ACT PROVIDING FOR THE "NO BIDDING" SALE OF LANDS OWNED BY THE NATIONAL GOVERNMENT OR ANY OF ITS AGENCIES OR INSTRUMENTALITIES TO ITS OCCUPANTS FOR SOCIALIZED HOUSING, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7279, OTHERWISE KNOWN AS THE URBAN DEVELOPMENT AND HOUSING ACT OF 1992, AND FOR OTHER PURPOSES,

reconimendiiig its approval in substitution of Senate Bill Nos. 1999 and 2175, taking into consideration House Bill No. 3834.

Sponsors: Senators Biazon and Mar Koxas



Upon motion of' Senator Pangilinan, there being no objcction, the Chair declared the session suspended until ten o'clock in the morning of the following day.

It was 6:SO p.m.

RESUMPTJON OF SESSlON

At 1O:OO a.m., Thursday, November 23, 2006, the session was resumed with Senate President Pro Tempore Flavier presiding.

REMARK OF SENATOR DRILON

Senator Drilon informed the Body that Senator Angara was ready to interpellate on the DBCC and the DepEd budgets, but the concerned resource persons were not around.



It was 1O:Ol am.


At 1O:Ol a.m.. the session was resumed.

Senator Drilon acknowledged the presence of Finance Secretary Gary Teves in the gallery.



I t was 10.42 a.m.


At 10:05 am., the session was resumed.


(Continuation)

Upon motion of Senator Drilon, there being no objection, the Body resumed consideration, on Second Reading, of House Bill No. 5794 (Committee Report No. 160), entitled

AN ACT APPROPRIATING FUNDS FOR THE OPERATION OF THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES FROM JANUARY ONE TO DECEMBER THIRTY-ONE, TWO THOUSAND SEVEN, AND FOR OTHER PURPOSES.

Senator Drilon stated that the parliamentary status was still the period of interpellations.

Thereupon, the Chair recognized Senator Pimentel, who informed the Body that the bicameral conference committee on the Biofuels Act ham- mered out a compromise version in the wee hours of the morning that day and expressed hope that the law would enable the countly to be self-sufficient

4P in energy.

t"

THURSDAY, NOVEMBER 23,2006 759

INTERPELLATION OF SENATOR PIMENTEL

Asked by Senator Pimentel if there is an appropriation for the Biofuels Act, Senator Drilon replied in the negative, explaining that when the national budget was submitted to the House of Representatives, the biofuels bill was still being deliberated upon in both Houses; nonetheless, he was willing to listen to a budget proposal for its implementation.

Senator Pimeutel suggested that at the proper time, the financial requirements of the Act be accommodated through the realignment of some items to show the commitment of the Senate to biofuels development. Senator Drilon remarked that the Committee would review the budget when the Body is about to tackle the required funding for the implementation of the Act.

At this point, Senator Angara stated that there are two potential sources of funding for the Act - a Department of Energy special fund account representing the Malampalaya share of the government to be used for support to energy and power development; and the DPWH running account representing proceeds from the road user’s tax for the anti- pollution campaign. Senator Drilon affirmed that the latter is a more potential source as it amounts to P8 billion. He recalled that when the Committee was hearing the budget of the DPWH, Senator Angara brought up the possibility of tapping the funds for the implementation of the Biofuels Act and the DPWH officials agreed, subject to the submission of whatever requirement is needed. He added that a special provision for this purpose in the DPWH budget might be needed since the road user’s tax is automatically appropriated.

Senator Pimentel thanked Senator Angara for the information, as he gave the assurance that at the proper time, the appropriate amendment to fund the Biofuels Act would be crafted.

Upon query of Senator Pimentel, Senator Drilon replied that for the current year, the programmed deficit is P125 billion and for the next year, P63 billion. He added that to date, the deficit is P56 billion and the finance secretary would have a better understanding of the deficit and revenue picture once there is an indication of the utilization of the spending authority under the supplemental budget. A lot of factors contributed to a lower than expected deficit, he said.

Senator Pimentel reported to the Body that uncollected “aero” fees or fees from the use of airports and air space as of July 31, 2006, amount to P3.6 billion, of which amount, P803 million is due from the Ninoy Aquino International Airport. Senator Drilon stated that he would make the proper inquiry with the DOTC Secretary on this matter and ask for a report.

Asked how the DOF has acted on taxes due from tax evaders, Senator Drilon replied that the BIR has a Run After Tax Evaders (RATE) program which has resulted in an increase in its tax collections. He stated that as of December 2005, the BIR has filed 44 tax evasion and estufu cases against companies and high-profile individuals with an estimated tax liability of P2.9 billion. While he has no specific listing of pending tax evasion cases or how much was collected, he assured Senator Pimentel that a complete report on the RATE program would be available by the time the BIR budget is deliberated on the floor.

Citing the case of a high-profile business tycoon who supposedly owes the government PI07 billion in back taxes, Senator Pimentel wondered if, in tax evasion cases, the government may appeal what it deems as an unsatisfactory ruling of the regional trial court. Senator Drilon replied that an acquittal in a tax evasion case would not prevent the filing of a civil case for the collection of the taxes.

In closing, Senator Pimentel believed that even if tax evaders are not jailed, the government should at least collect the back taxes.



I t was 10:25 a.m.


At 10:25 a.m., the session was resumed.

Thereupon, the Chair recognized Senator Angara for his interpellation.

INTERPELLATION OF SENATOR ANGARA (Continuation)

At the outset, Senator Angara stated that the estimated exchange rate in 2007 is within the range -@

760 THURSDAY, NOVEMBER 23,2006

of P51-P53:US$I. He then asked for the finance secretary’s projection if the peso continues to strengthen in the coming year.



It wus 10:27 a.m.



Asked how a P1.00 improvement in the exchange rate of P51-P52:US$I in 2007 would translate to net savings, Senator Drilon explained that every peso appreciation in the exchange rate would mean an excess of about P4.5 billion to P5 billion in appropriations.

On the possibility that the P4.5 billion could realistically be saved given the favorable trend in the exchange rate, Senator Angara asked how that amount could be utilized and who would authorize its use. Senator Drilon pointed out that any favorable trend in the exchange rate would affect the collections of the BOC. He explained that a exchange rate could also generate a better business environment and result in higher tax collections. Moreover, he said that such a scenario would lower the national deficit since the government cannot spend beyond what is authorized in the GAA.

Senator Angara contended that the savings could be realigned and utilized upon the directive of the Executive branch. He believed that the Senate should know beforehand how government intends to use the monies other than for operational expenses. Senator Drilon replied that excess monies saved as a result of the improvement in the exchange rate should be appropriated for interest payments, to have a lower deficit for the year. But he doubted whether the government could legally use extra appropriation, such as a savings of PI billion, to fund projects that are not included in the GAA.

Senator Angara recalled that during his term as chair of the Committee on Finance, the Executive branch overestimated the exchange rate and interest payments resulting in a P6 billion excess appropriation and that was allocated to specific projects and

programs. Senator Drilon said that the same could be done if the Executive department informs Congress of its intention to increase the spending authority on the programmed appropriation; otherwise, a supplemental budget would be needed. However, Senator Angara pointed out that based on experience, supplemental budgets are seldom resorted to.

Asked whether another alternative could be studied so that unprogrammed items could be contingently funded out of potential savings, Senator Drilon said that he would meet with the economic managers to study the possibility of including a provision in the GAB that authorizes the use of savings resulting from a favorable exchange rate to find the unprogrammed portion of the national budget.

INTERPELLATION OF SENATOR ENRILE (Continuation)

At the outset, Senator Enrile stated that while total goveniment revenues grew by 8.3% between January and July 2006 compared to the same period in 2005, it missed tax revenue targets by PI .5 billion. He said that nontax revenues made up for the gap for the same period in 2006.

Asked on the status of revenue collection and whether collection targets were being met, Senator Drilon replied that as of end of October 2006, the government was ahead of its revenue target by 1’1.3 billion, both the tax and non-tax components.

On whether the government intended to reduce the national deficit from -2.1% or P124.9 billion in 2006 to -0.9% or P63 billion in 2007, Senator Drilon replied in the affirmative, clarifying that there arc unprogrammed deficits for 2006 and 2007.

Senator Enrile noted that government intended to reduce the consolidated public sector deficit to about - 1.2% of GDP or PX0.8 billion in absolute terms. He said that the programmed reduction of the consolidated public sector deficit was from P124.9 billion in 2006 to P63 billion in 2007; however, GOCC deficits were expected to swell from P47.8 billion in 2006 to P55.5 billion in 2007. Given this situation, asked how the government is going to achieve its target deficit for 2007 of P63 billion, Senator Drilon replied that the P63 billion deficit excludes the GOCC’s deficit.

Senator Enrile noted that the outstanding debt of the national government grew by 2.8%, from &

THURSDAY, NOVEMBER 23.2006 76 1

P3.89 trillion in 2005 to P3.99 trillion in 2006; and the government has adopted a two-step strategy - reduce foreign debts, on the one hand, and increase domestic debts, on the other hand. Although the present share of the total outstanding debt to GDP would decrease from 66.7% in 2006 to 62.1 % in 2007, he pointed out that the total outstanding debt would continue to increase in absolute terms from P4.08 trillion in 2006 to P4.17 trillion in 2007. He asked whether the increase in total outstanding debt year-on-year was reflective of prudent fiscal management. He also asked when the decline of the level of outstanding debt in absolute term would be seen.



It was 10:45 a.m.


At 10:46 a.m.. the session was resumed.

Senator Drilon stated that the fibures mentioned by Senator Enrile were correct. However, he pointed out that the national deficit has been declining and that, in fact, the programmed P125-billion deficit for 2006 might go down even lower. He agreed that while the programmed deficit for next year is P63 billion, GDP has been going up, hence, the ratio of the deficit to GDP has been favorable and thal could absorb the increase in national indebtedness.

On whether there would be a decline in the country’s indebtedness in 2007 in absolute term, Senator Drilon replied in the negative, as he affrmed that the government though would be able to cope better with the debt burden because of a better deficit to GDP ratio.

Asked how realistic the administration’s economic and fiscal goals are for 2007, Senator Drilon expressed optimism that the macroeconomic targets could be met the favorable exchange rates, credit ratings, and new revenue measures.

Senator Enrile stated that the President’s budget emphasized economic growth and macroecononuc assumptions which may, like any other entities that are subjected to economic boom or bust, vanish. Moreover, he observed that the medium-term public

investment plan of 2006 to 2010, in the final analysis, is only a shopping list that has yet to be fulfilled much like its kin, the MTPDP. He asked how the country would benefit from such grand projections of growth in real terms. Senator Drilon replied that the Committee intended to redirect some of the government spending so that the benefits of an improved economy could be immediately felt by the people; for instance, P4 billion was redirected to address, once and for all, the backlog in school- rooms; an additional PI .5 billion was placed in the DA budget to help farmers acquire better post- harvest facilities and improve their lot.

Assuming that the projected growth would be realized, Senator Enrile asked how the President could ensure that the economic and fiscal gains made by her administration would not wither in the end, or worse, disappear as she leaves the presidency in 2010. Senator Drilon believed that solutions to the problems of the economy and governance would depend greatly on the political will of the President to enforce laws, impose fiscal discipline on the bureaucracy and ensure that the revenues are met. He stated that the macroeconomic fundamentals continue to be favorable and government should ensure quality spending so that whatever resources devoted to activities would yield the highest benefit to the greater number. However, he believed that Congress should share the responsibility of preserving these gains by effectively exercising its oversight and legislative hnctions.

Although the national budget underscores critical increases in social expenditures, on the one hand, and reduced deficits on the other hand, Senator Enrile observed that much of its thrust dovetailed with the President’s pet super-regions project. He asked how much would be allocated to each region; how the budget as a development tool would ensure that regional inequities are not exacerbated; the impact of the budget priorities on productivity targets; how this would boost regional productivity: and what regions would benefit or suffer. Senator Drilon replied that based on the DBM report, the investment in super regions in 2007 to 2010 are as follows: Metro-Luzon beltway - P255.355 billion or 68.6%: Northern Luzon - P22.7 billion or 6.1%; Central Philippines - P71 billion or 19%; Mindanao - P45 billion or 16.91%; and nationwide - P6 billion or 1.6%. He expressed hope that the implementation of the projects across the regions would address the inequities. He said that the Committee would ++,.

kJ

762 TI-IURSDAY, NOVEMBER 23,2006

provide more details on the matter based on the NEDA report.

As to how the Arroyo administration would fulfill its goal in the 2007 NEP, specifically to have a sound judicial system, Senator Drilon replied that the Committee, for instance, helped meet the demands of the Office of the Ombudsman by adding P250 million to its budget in addition to the President’s budget for the office. He expressed hope that the added allocation would make the Office of the Ombudsman more effective. He informed the Body that there is a PI billion millennium fund, spread over two years, from the USAID precisely to address the issue of corruption in the Philippines, which is at the bottom of the Transparency International’s list of cormpt countries; and the Committee provided a special provision in the budget on the right to information. He recalled that during the hearings, the Ombudsman agreed with the Committee that the office has enough funds to hire all the prosecutors it needed.

Asked what institutional mechanisms would be put in place to alleviate poverty, promote sound economic performance and competitiveness, and balance social development, Senator Drilon stated that when the Committee reviewed the budget, it was guided by the principle that the budget should not only emphasize the imperatives of growth, but the imperatives of growth with equity because economic indicators do not have any meaning to Juan de la Cmz if he does not feel the improvement in the economy. It is for this reason, be said, that the Committee redirected some of the funds to address the social equity needs by adding to the budgets of the health and education sectors.

To the observation that the large portion of the budget for development is concentrated on overbuilt areas - education, infrastructure, among others - to the detriment of the poorer and less developed areas, Senator Drilon stated that this only indicates the need for greater collaboration between the economic managers and the Legislature. In the next round of budget deliberation, he stressed that there should be early consultations between economic managers and the legislators so that the budget would reflect the policies the latter have in mind; thereafter, the national budget, with the inputs of legislators, could be presented to the President. Senator Enrile asserted that this is supposed to be the purpose of the LEDAC.



It was 11:06 a.m.


At 11:07 a.m., the session was resumed,

Senator Pangilinan informed the Body that after conferring with Senator Drilon, it was agreed that the interpellation on the DBCC would be suspended to a later hour to give the other Members the opportunity to interpellate on the same. In the meantime, he stated that Body would proceed with the interpellations on the budgets of the following agencies: DepEd and its attached agencies; DepEd School Building Program; Commission on Higher Education; State Universities and Colleges; Department of Health; and the COA.



It was 11:08 a n i


At 1 1 : 18 a.m., the session was resumed.

DEPARTMENT OF EDUCATION

Senator Drilon presented the budget of the Department of Education (DepEd). He stated that under the DepEd‘s 2007 budget, the new appropriation amounts to P126,311,092,000 plus P1,760,000,000 under the School Building Fund.

INTERPELLATION OF SENATOR LIM

Asked by Senator Lim if the education secretary has knowledge of the sale of the sites occupied by the Jose Abad Santos High School, the Rajah Sulayman High School, and the Meisic Police Station, Senator Drilon replied that DepEd has not been officially informed about the transaction.

Senator Lim informed the Body that on July 10, 1954, President Magsaysay signed Presidential


Proclamation No. 46, excluding from sale or settlement the property known as Cuartel Meivic situated in the district of Binondo, Manila, and reserving the property for public use as sites for the Meisic Police Station, Jose Abad Santos High School, Meisic Health Center and the Office of the City Engineer. He informed the Body that the properly was sold by the present mayor of Manila and converted it into a shopping mall despite objections from the National Historical Institute and the Heritage Conservation Society. He asked what DepEd had done to prevent the sale.

Senator Drilon explained that although the department was aware of the proclamation, the matter was not brought officially to its attention. Now that the issue was raised, he expressed confidence that the DepEd officials would look into the sale. Considering the objections raised by the NHI, he acknowledged that there was basis to question the validity of the sale and, in case of litigation, the developer could be held liable and be required to restore the site to its original condition.

Senator Lim disclosed that he learned of the anomaly two months ago when a group of parents from the two affected schools, the Rajah Sulayman High School and the Jose Abad Santos High School, together with some alumni, went to his office to protest the sale. He said that he objected to the sale for sentimental reasons because he served at the Meisic Police Station as a rookie policeman in 195 1. He bewailed that the city officials sold the sites on the basis of a mere resolution from the city council when only Congress has the authority to convert land of public domain to private use. He revealed reports on the sale of other historical buildings such as the Rim1 Memorial Stadium, Army and Navy Club. He expressed deep concern about the frenzy in disposing of inalienable lands.

Relative thereto, Senator Lim informed the Body that he had filed a petition for declaratory relief and issuance of Temporary Restraining Order and Preliminary Injunction signed by seven senators. He said that he was still studying whether a case of violation of the Anti-Graft Law could also be filed against the concerned parties.

Asked whether he could expect support from DepEd, Senator Drilon gave assurance that the department fully supports Senator Lim’s effort to restore historical sites and prevent further dissipa- tion of properties of public domain. He expressed his

personal support for the effort to correct what appears to be transgressions of the country’s laws.


Senator Augara noted the terrible state of science education in the country with almost half of teachers in general science, biology, chemistry, and physics not having majored in their disciplines. He asked how many teachers holding majors in the sciences, including mathematics, are needed to be hired.



It was 11:35 a.m


At 11 :36 a.m., the session was resumed.

Senator Drilon stated that DepEd cannot disaggregate the figures on a specific discipline. He said that approximately 50,000 high school teachers teach the five disciplines but only 50% are qualified. As regards the elementary level, he informed the Body that there are no specialists to speak of because the teachers teach all the subjects.

Senator Angara reiterated that the poor state of science education along with governance problems is a major cause of the dropping competitiveness of the country. He contended that the lack of technological innovation which springs primarily from poor basic and tertiary science education and lack of advanced research in science and engineering is most telling. He said that the five critical disciplines should be filled up in the hiring of 16,000 teachers in 2007.

Senator Drilon gave assurance that the department would give a disaggregated list of the teachers in the five disciplines, even as he affirmed that the budget of DepEd would specify that a certain percentage of new hirees next year should be science and mathematics majors.

Senator Angdra urged the DepEd to move towards a specialist rather than a generalist teaching of science in the elementary level, citing the practice in other countries where even pre-school children are already introduced to science and information

b

164 THURSDAY. NOVEMBER 23.2006

technology. He said that without the specialist field which is the foundation of the so-called knowledge economy, the country would continue to be noncom- petitive.

On another point, Senator Angara said that the Bureau of Alternative Learning spends about P80 million on alternative learning methods. He disclosed that 11.6 million young people aged 6 to 24 are completely out of the school system, a figure that is almost two-thirds of the student population in the formal school system. In this regard, he inquired on the DepEd’s institutional mechanism to take care of youth education and training.



It was 11:41 a.m.



Upon resumption, Senator Drilon said that the Bureau of Alternative Learning, under the supervision of DepEd, has basic literacy and accreditation and equivalency programs that address the problem of the out-of-school youth. He informed the Body of his request to Undcrsecretary Bacani to submit to the Coninlittee a more detailed written explanation of the specific programs presently in place and their budgetary requirements.

In reply to a further query, Senator Drilon said that the Bureau of Alternative Learning has a total budget of P230.140 million, P145 million of which would be used for lield operations, and about P85 million for operating requirements.

Senator Angara pointed out that the cited budgetary allocation reflects the sad state of management of youth education. He urged the DepEd to come up with concrete institutional arrangements as additional funding, if necessary, could be provided to address the needs of the nearly 12 million youths. Senator Drilon suggested tlie creation of a subcommittee under the Corninittee on Education, Arts and Culture to study the matter in detail.

Senator Angara volunteered to head the subcommittee which, as a starting point in the agenda to

provide literacy, skills and training to Filipinos, should study the list of the 300 arts and trades high schools in the country, and eventually, determine which of them needed improvement. Senator Drilon expressed willingness to allocate some of the capital outlays for the tech-voch high schools and to augment their current P50 million budget from the PI4 billion School Building Fund. Senator Angara expressed hope that at least P300 million could be allocated for the repair of school buildings and purchase of equipment necessary for training purposes.

On the CHED budget, Senator Angara inquired on the balance of the Higher Education Development Fund that has accumulated over the years and which was intended to help develop and enrich the content and direction of higher education. He said that the fund collects close to a billion pesos from travel tax, PCSO, the annual appropriations and other specific sources.

Senator Drilon said that the balance in the Bureau of Treasury as of August 31, 2006, was P805,144,850.48, and about P600 million goes to the fund every year. He affirmed that the proposed P854 million budget for this item would be utilized for the following: institutional capability-building, P79 million; rationalization of programs, standards and guidelines, P74.3 nullion; research, P5 1.1 million; scholarships, P441 million; and higher education development program, P208.3 million.

Senator Angara proposed to rechannel the development fund ~- which is the only fund available for the improvement of higher education - to research, in light of tlie poor state of the country’s basic science education and the need for a strong higher education catch basin. He stated that some of the scholarships should be covered by other programs, and it would be best to use the funding for research and development projects, which shall contribute to the build-up of science and technology infrastructure that is essential for competitiveness. Senator Drilon agreed, saying that a run-through of the listing of the scholarship programs to which P.5 billion has been allocated proved the absence of any technical and science scholarships.

So as not to prejudice the scholars who are currently enrolled, Senator Angara proposed that beginning Academic Year 2007-2008, no other scliolar- ships should be offered except for physics, chemistry and other courses in general science and technology. p


Recognizing the political pressure exerted on the CHED as far as scholarships are concerned, Senator Drilon said that the Body could study the possibility of having a special provision in the budget directing the use of the fund toward science and technology, and research as well.

Senator Anyara agreed, saying that the science-oriented congressmen would be given the opportunity to nominate their best and brightest constituents to pursue degrees in physics and engineering. Senator Drilon said that both concerns could be addressed - the need for science and technology scholars, and the constituents of government officials who are in need of scholarships.

Senator Angara believed that the forward-looking CHED Chairman would agree to a redirection of resources to scholarship and fellowship programs, and to research. Senator Drilon stated that the CHED Chair has given her assurance on the matter, and added that the Committee would propose a special provision to address the concern.

Asked how much time it would take CHED to produce a revised research agenda and a new scholarship scheme that is in accord with said special provision, Senator Drilon replied it would take CI-IED about 60 days to prepare, at least, the initial draft of the revised program.

Asked if there is an appropriation in the 2007 budget for the activation of the Legal Education Council, Senator Drilon replied in the negative. However, he said that there are efforts to put in P20 million for this purpose, which could he discussed in the bicameral conference committee.

Senator Angara recalled that in the 2006 hudget, P20 million was allocated for the Legal Education Council which shall be composed of deans of law schools and justices who would prescribe the curriculum for law schools which is presently dictated by the Supreme Court.

Senator Drilon pointed out that under the programs and projects of the Higher Education Development Fund for 2007, there is a P2-million budget for legal education, and P3,839,000 for criminal justice, which could be utilized for the Legal Education Council.

SUSPENSION OF CONSIDERATION OF THE BUDGET OF THE DEPARTMENT OF EDUCATION

In reply to a query of Senator Drilon, the Chair said that Senator Enrile has made reservation to interpellate on the CHED budget.

Senator Drilon requested that Senator Angara be allowed to use the remaining time to ask questions on the DOH budget, and that the interpellation on the budgets of DepEd and CHED be resumed in the afternoon.



It was 12:05 p.m.


At 12:13 p.ni., the session was resumed.

DEPARTMENT OF HEALTH

Senator Drilon presented the budget of the Department of Health. He stated that the Committee has recommended the following:

t increase of P625,477,000 in the NEP budget of P11,162,998,000, for a total of P11,788,475,000

increase of P200 million for the capital outlay ofthe Philippine General Hospital;

in the allocation for preventive medicine and promotive public health services, an increase from 10% to 30% of the income of special hospitals, medical centers and other national government hospitals, upon the suggestion of Senator Flavier, and in this provision, the word “EXCLUSIVELY was inserted so that the funds cannot be used for other purposes.

t

t


Senator Angara noted that if the inflation rate were taken into consideration, the 2007 DOH budget, which is 1.42% of the total national budget, would even be lower than the 2003 budget which was &-

F


1.3% of the total national budget. He said that in the lecture delivered by a health specialist from England, it was pointed out that the Philippine health system is in such a mess that it faces imminent collapse due to the continuous recruitment of Filipino health professionals and workers.

Senator Angara pointed out that only 10% to 15% or the population have access to western medicine and this is one of the reasons why the Philippines has the shortest life expectancy and highest child mortality rates in the region. He asked the health secretary to comment on his observation.

SUSPENSION OF THE RULES OF THE SENATE

Upon motion of Senator Drilon, there being no objection, the Body suspended the Rules of the Senate to allow Health Secretary Duque to respond directly to queries of Senator Angara, and to convert the Body into a Committee of the Whole for that purpose.

Following is the full exchange between Senator Angara and Health Secretary Duque:

Secretnry Duyue : The observation that the budget of the Department or Health has pretty much been on a plateau is accurate. Perhaps if you were to compare this to 2003, taking into consideration the inflation and the population growth rate, the budgct is perhaps much, much lower. If you were to use real values using 1985 as a benchmark, it is much lower. On the second observation on patent rights versus patient’s rights., ,

Scnntor Angarn : This is not mine. I was quoting the English lecturer.

Secretnry Drryue : Yes, sir. We agree certainly to this observation, that is why we welcome the Senate’s initiative, especially a bill that is being authored by Senator Mar Roxas with respect to measures that will insure the entry of low-cost quality medicines. And then the 40% that had been mentioned of our population not seeing a doctor ever, this is something we need to look into, your Honor, because wc do not think it is that high at 40%.

Senator Angnrn : How niuch do you think it is?

Secretary Duque : I would say about IO%, 10% to 15% at the most.

Sermtor Angara : So about nine million Filipinos.

Secretary Duque : And we say this with confidence, your Honor, because we have already tremendously increased the coverage of our National Health Insurance Progam. On this account, we were able to use the additional incomes given to the local health systems to further enhance, develop and improve their health care service capacities. Also, with respect to 10% to 15% of the population only accessing the allopathic or Western-type of medicine, again, we do not have hard data to support this but, certainly, it behooves upon us to take a closer look into these numbers that have been mentioned.

Sennlor Angnra : And the conclusion that, as a result of shortcomings, we have the shortest life expectancy and the highest child mortality.

Secretnry Dnque : The latest 2003 data would reveal that the life expectancy of the Filipino is comparable to that of the Thai, which is about roughly from 69 to 7 I years of age.

Senntnr Angara : For male.

Secretnry Duque : For male it is 69, and female is 71.

Senntor Augnra : All right.

Secretnry D u p e : And then our infant mortality rate is not very far off than ‘Thailand and Vietnam, because right now we are at 29 per 1,000 live births.

Senntor Angnrn : Versus 17 of Thailand?

Secretary D u p e : No. I think Thailand is about 22 or 23 and Vietnam is about 27. All of these are subject to validation, however.

Senator Angnra : I think I have that figure but iT Secretary Duque’s people have that, I will appreciate getting that kind of statistics.

Secretary Duque : Vietnam is 32 per 1,000 live births. that is the infant mortality rate.

Senator Angnrn : All right. So, we are really not far behind.

Secretnry Duyue : We are not.

Senator Angnrn : We are killing our infants but not too many of them.

Secretnry Duyue : That is why we have appealed for higher budget for our expanded program on immunization and we have been pushing very aggressively the exclwive breastfeeding program of the Department of Health, in coordination with our LGUs, and we have our food fortification.

Senator Angnra : I made that law, incidentally.&

P


Secretary Duquc : Yes, and I would like to thank the good Senator. Just as he did father the law creating the National Health Insurance Program which is probably one of the landmark legislation ever to come out.

Senator Angaru : Can the gentleman put that in writing please'? I would like to thank the gentleman, but I also saw in the statistics that our maternal death rate is pretty high.

Secretary D u p e : Admittedly, the Philippines' maternal mortality rate is one of the highest in the region based on the 2003 data. But I think we need to do another census or a survey to exactly find out whether the programs that have been put in place have now effected some positive change. I think the survey will begin before the end of the year and we hope to see the results of those surveys to come out next year.

Resuming his interpellation, Senator Angara thanked Senator Drilon for providing in the budget the seed capital to initiate the census. He observed that the ratio of the health budget to the national budget has not changed over the past five years; it is still 15% for preventive and 85% for curative, meaning, the government has maintained all the hospitals and clinics and personnel to man them but has spent very little on immunization, breastfeeding program and education, maternal and child health education and literacy, e/ cetera. Senator Drilon confirmed the statement.

On whether it is difficult to rechannel and redirect spending toward preventive measures like child vaccination, intensive public education on cleanliness and sanitation, Senator Drilon replied that one of the difficulties is that public health has been devolved to the local government units.

Senator Angara suggested that the actual field work be left with the LGUs and the overall national standard be retained by the DOIi so that, through policy coordination, field work would jibe with the national program. Senator Drilon clarified that field work has been devolved while the DOH provides policy guidelines.

Senator Angara believed that there should be a vehicle to coordinate with the LGUs the implementation of vaccination and sanitation and cleanliness programs. The probleni, he believed, originated from the fact that when Congress agreed to devolve health to the LGUs in 1992, the functions of the personnel were devolved but the budget remained with DOH.

Senator Flavier recalled that he was the health secretary when the devolution was implemented and he gave every centavo to the LGUs to continue the job but they did not use the monies for health but for infrastructure in aid of reelection.

Senator Angara argued that the DOH should not yield the national standards because it has the clout and the moral authority to impose them on the LGUs. He said that the DOH, in fact, has a greater claim to a higher budget if it is able to exert its will over the whole nation in pursuing programs, for instance, on malaria and tuberculosis. Diabetes, he bared, is an emerging national health hazard and the DOH should take the lead not only in raising public awareness but also in aggressively pursuing ways and means to marshall resources. He disclosed that when Usec Nietas was the regional director of Aurora, she was very active and helpful and she is still looking after the province where malaria is on an upsurge. He added that almost every province along the Pacific Coast is now afflicted with the disease. Senator Drilon stated that malaria, tuberculosis, dengue and diabetes are part of the priority programs of the DOH.

Asked if the DOH has a national team that goes around the country to coordinate and link up with the local officials, or whether it provides funding and medicines for such undertaking, Senator Drilon replied that it is being done, particularly through the DOH regional offices, and also as part of the benefit package of PhilHealth.

At this point, Senator Anguru directed his queries to Secretary Duque.

Senator Angara : I go back to my original question. Why is it that we cannot increase and step up the preventive, promotive aspect of health? In what way can we do that'? Can we not rejuggle the budget right now even if it is already proposed, so that we can put more into prevention rather than curative? Of course, we cannot avoid curative, but I think the proportion is so lopsided, 85 to 15, that I think in many countries would really looked skewed.

Secretary Duque : The DOH Manifold Programs, support of preventive as well as promotive health programs, will include the following:

I . We have, during this administration, the launching of our Disease-Free Zone Initiative, which means that we continue to monitor certain provinces. For example, last August, we were able to declare the Province of Benguet a? $tr


malaria-free. And we are looking at Cavite, Palawan and Masbate as part of our disease- free initiatives. And along these lines, we also have the filariasis and schistosomiasis disease- free zones. It is for this reason that we have been aggressively administering the mass drug administration in highly endemic regions of the country. We would like to make sure that we put a closure on certain diseases like filaria and schistosoniia. And also, with respect to tuberculosis, we have been aggressively addressing this by way of health insurance because TB is, in fact, been included as part of the menu of benefit packages from the National Health Insur- ance Program and that is unprecedented. It was the first time that we included TB. It was never included in the menu of benefit packages before.

And then, even the normal, spontaneous pregnancy ~- it is largely the reason why we continue to have a high infant or rather maternal mortality rate is what people would consider as a nonnal pregnancy, the bulk of that is what gives rise to the high infant or the maternal mortality rate. Because a lot of complications do occur before, during and after a pregnancy that was thought to be normal. So we do have a long list of programs that support our preventive and promotive programs.

Senafnr Angara: You have flexibility and scope Mr. Secretary, within your proposed budget to alter or realign part of the existing programs so that you can give more to the preventive aspect. 1 correct myself because I thought it is already 15%, i t is only 11.6% for preventive.

Secretary Duque: Yes, your Honor. I think we do have that flexibility.

Senatnr Angara: Would the Chairman agree that they would submit that kind of realignment so that we can increase our preventive portion of h e budget‘?

Senator Drilnn: Yes, Mr. President,

Senator Angnra: Now, in relation to that, administration and regulation command a higher percent of the budget, it is 16.3%. What is administration and regulation, especially regulation’? I understand administration.

Secretary Duque: I think that is the budget for the regulatory bureaus such as the Bureau of Food and Drugs, the Bureau of Health Facilities and Services, and the Bureau of Health Devices and Technology.

Senaffw Angara : But they are revenue- generating as well?

Secretary Duque : Well, the two of them are revenue-generating, but they are not allowed to retain their incomes, while only one, which is the BFAD, has been recently allowed to retain its income.

Senator Airguru : But why are we spending for their maintenance and operation more than for preventive health? Well, anyway, I would like you to look into it because anyway, you are going to submit to us a realignment where we can increase the ratio of preventive care to the total budget.

Secretary Duque : Yes, your Honor

Senator Angara : When?

Secretnry Duque : Yes, sir, sn Monday PO

Senatfir Airgara : All right. Now, one final question to the Secretary. As you said, we are debating the revision of the Intellectual Property Law in order to allow parallel importation. That means. we can import any brand of medicine from India or Hong Kong, or anywhere where it is cheaper and sell it in the Philippines, among other changes. But let me ask your opinion. In New Hampshire, in America, what the legislature did is to mandate that the statewide health system and the county and city governments combine their budget for the purchase of medicine, and they will deal with the pharmaceuticals as a group and drive down the price because they now have the negotiating and bargaining power. And when the pharmaceutical companies question this legislation, the State’s highest court said, “No, this is valid. This in legitimate exercise of the public welfare.” You said that you have no control over local government purchase of medicine because of the local autonomy and the devolution. But could we not forge even an agreement between the Department of Health, and to start with the key consumers and buyers of drugs, let us say. cities of Manila, Davao and Cebu, to set the example that by market force, by bargaining, we can drive down the price of medicine, in addition to what we are doing now in the legislature of altering the Intellectual Property Law to allow parallel importation. Can we do that, Dr. Duque’?

Secretary Duque : Yes sir. In fact, we have been discussing this with the Senate counterparts in the lower House of Congress and we believe that unless we have the volume, we will not be able to create a dent, in the way the pricing structure is currently and we feel that one very strategic area where we can pursue that direction that the distinguished gentleman has just mentioned is looking at the PhilHealth reimbursements of drug LP

THURSDAY, NOVEMBER 23.2006 769

items. And last year, I think the total PhilHealth reimbursements reached about P4 billion. So, that in itself is a big volume and certainly we can capitalize on it to be able to include that in the overall proposed pooled procurement system where we can leverage this with the drug manufacturers and suppliers to bring down the cost of medicine. Because, then. they will be able to cut their expenses in terms of marketing, advertise- ments, et celera because they are now assured of a huge volume of drugs and medicines to be ordered from them.

Senator Angara : How much do you think is the total purchases of government, both national and local drugs?

Secretary Duque : Well, they say anywhere from P60 billion to P80 billion annually. But I do not know how much.

Senator Angara : Let us say, just P50 billion.

Secretary Duque : Let us say, P50 billion for essential drugs and medicines.

Senator Angara: Yes, because not all medicines, just essential drugs. But that is a huge volume and clout, I think, if we can get that pooling arrangement made. Does the gentleman not think so?

Secretary Duqae : Yes, I certainly agree, your Honor. And as I have said, we have started the talks and we continue to study the proposals coming from different sectors.

Senator Angara : Still on a talking stage.

Secretary Duque : We are still on the computing and talking stage.

Senator Angara :The other point about the high price of drugs is, it seems, according to the Generic Drugs Industry, that the doctor’s prescription is largely dictated by the pharmaceutical companies because of the massive support and promotion to doctors. Their prescription pattern is more towards branded rather than generic. What can the Department of Health do, as the regulatory body, even perhaps with this prescription pattern’?

Secretary Duque : We have started to rectify this situation throngh. for example, PhilHealth. We will not reimburse drugs and medicines which are not prescribed in its generic form or tenninology, that is one. And then we do not also reimburse drugs and medicines which are outside of the Philippine National Dnig Formulary So it has to he ensured that the drugs prescribed by the doctors are within the allowed list of the PNDF and that these are also prescribed in the generic term. But the distinguished senator is right,

I must agree that the prescribing behavior of our physicians is largely driven by a tacit agreement between drug manufacturers by way of giving incentives, by way of providing junket trips and a lot more incentives, your Honor. And I think that has to change.

Senator Angara : To stop or change. Can we not do it by administrative regulation?

Secretary Duque : We have already started this I think about two years ago. We have issued an administrative order to all DOH-MDs to prescribe only in generic.

Senator Angara : No, but it is not simply prescribing in generic terms, it is really prescribing generic drugs. Hindi lamang pangalan ng kung baga “Lipitor.” Use the generic term for “Lipitor,” the equivalent.

Secretary Duquc : It0 ho, no brand, talagang generic Iamang PO.

Senator Angara : Para ma-encourage natin. It is relatively cheaper than the branded medicines.

Secretary Duque : Yes, your Honor. That is why we have already enforced this. We have already implemented this as far back as two years ago. So, that is, only generic iynng mga gamot. And in fact, I have been signing many cases that have been brought to the OSEC for violations. So we have been imposing sanctions.

Senator Angara : We are not what Secretary Romy Neri ~ prone to regulatoly capture. That means that the regulated captures the regulator. Hindi ta.vo r o d ? We are not in that situation yet’?

Secretary Duque : No, I hardly think so.

Senator Angara : That is all for me, Mr. Pres- ident, on the health budget. I have one question regarding PhilHealth, if I may.

Resuming his interpellation, Senator Angara recalled that in the hearing of the DOH budget, there was unanimity in providing funds for the indigents through the PhilHealth cards and to implement this agreement, there was a suggestion, as a precautionary measure, to insert a provision in the budget law prohibiting the distribution of these cards during the election period in order to preserve the institutional integrity of PhilHealth and the nonpartisanship in health.

In reply, Senator Drilon stated that included in the budget is a provision directing that new enrollees would be effective only in July 2007. Specifically, .IC;.

770 THURSDAY, NOVEMBER 23.2005

he said that the P3.5 billion allocated for this program was broken down as follows: P1.5 billion - existing enrollees; P 1.5 billion ~~ new enrollees to be effective in July 2007; P500 million for payment of arrears in the national government subsidy in the enhanced PCSO Greater Medical Access.

SUEMISSION OF THE BUDGETS OF THE DEPARTMENT OF HEALTH AND ITS ATTACHED AGENCIES AND THE COMMISSION ON AUDIT

Upon motion of Senator Drilon, there being no objection, the budgets of the Department of Health and its attached agencies, and the Commission on Audit were deemed submitted for the Body’s consideration.

SUBMISSION OF THE BUDGETS OF THE STATE UNIVERSITIES AND COLLEGES

Upon motion of Senator Drilon, there being no objection, the budgets of the State Universities and Colleges were deemed submitted for the Body’s consideration, subject to further verification from Senator Enrile.

AFL‘ERNOON SESSION’S AGENDA

Senator Drilon informed the Body that the budgets of the Department of Education, Commission on Higher Education, Department of Agrarian Reform, Department of Science and Technology, Department of Environment and Natural Resources, and Departmenl of Labor and Employment, would be considered in the afternoon’s session.


Upon motion of Senator Drilon, the session was suspended until two o’clock in the afternoon.

It M ~ S 12:56 p.m


At 2:lO p.m., the session was resumed.

NATIONAL DISASTER COORDINATING COUNCIL

Senator Drilon presented the budget of the National Disaster Coordinating Council.

INTERPELLATION OF SENATOR LACSON

At the outset, Senator Lacson commended Senator Drilon for his competence in tackling the budget at the committee level, and Senator Flavier for his active participation in the hearings. He recalled that in the caucus the other day, Senator Drilon emphatically announced that he was not inclined to reduce the P1.126 trillion national budget by a single centavo. However, he said that the amount could be effectively reduced by P200 million since he would be giving up his pork barrel, as he has consistently done in the past years.

Senator Drilon thanked Senator Lacson for the gesture, as he explained that his statement was based on the failure of the bicameral conference committee to come up with a reconciled version of the 2006 GAB so that, this year, the expenditure program was restricted and many of the projects approved by the Senate in its version were not implemented. Nonetheless, he said that non-reduction did not mean the Committee could not redirect the spending authority as, in fact, it bad done as borne out in the committee report. He said that the appropriate reduction in the 2007 national budget as a result of Senator Lacson’s gesture would be made during the period of amendments.

Senator Lacson explained that he made the manifestation to make sure that P200 million would be made part of savings and help reduce the deficit in a small way.

On a related matler, Senator Lacson disclosed that according to the DBM website, not more than five senators actually received their Priority Develop- ment Assistanoe Fund (PDAF) this year and according to ten congressmen, they have not received their DBM releases either. Ile asked where the unreleased PDAF went. In reply, Senator Drilon explained that for 2006, the total PDAF is P6.220 billion. He confirmed Senator Lacson’s statement, saying that since 2005, the DBM has not released to him a single centavo from his PDAF, which goes to the school building program of the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc., probably because of his political differences with the President. He informed the Body that of the P6.220 billion, only P2.163 billion was released by the DBM and the Committee assumed the P4 billion balance became part of the under-spending of government. He said that as of the end of October this year, the deficit

THURSDAY, NOVEMBER 23.2006 77 1

amounted to only P50 billion but the programmed deficit for 2006 is P124.8 billion. He expressed concern that the under-spending could affect the government’s ability to achieve its projected growth rate.

On whether the balance could be declared as savings, Senator Drilon said that it could, when the year is over.

Senator Lacson requested the DBM to furnish the Body with more details on the PDAF releases. Senator Drilon bared that the Committee already did, but the DBM has been unable to provide data on the amount allocated to each senator or congressman.

To the contention that the non-rclease of the PDAF was a violation of the GAA, Senator Drilon stated that the matter of fund releases pertains to the Executive and is part of the system of checks and balance in government. He said that it would he difficult to raise a legal question on the non-release of the whole PDAF amount because it is the Executive that manages the funds, having been ganted the spending authority.

Senator Lacson asserted that when the release of the PDAF becomes too whimsical, it is unconscionable; and when it becomes too political, it is unfair to the legislators. Senator Drilon agreed.

Asked how the 2007 budget would impact on poverty, Senator Drilon replied that the Committee sought to do it through realignments, to wit: augmenting the DcpEd budget to cover the 8,000-classroom shortage; adding P730 million to the President’s budget for the hiring of teachers so that more teachers - 16,133 - could be hired; increasing the DA budget by P1.5 billion for post-harvest facilities to help farmers and fisberfolk maximize their production; and, adding P870 million to the health sector so that its services would be more accessible to the people.

On the aspect of growth, Senator Lacson asked whether the Committee considered the policy direction relative to the super regions in the President’s SONA. Senator Drilon clarified that the 2007 infrastructure appropriation was increased by PI62 billion, the highest increase since 2001, so he supposed that a number of projects in the super regions would he funded. However, he conceded that the infrastructure appropriation, as a percentage of GDP, is still below the 5% standard set by the World Bank.

Senator Lacson asked how the P162-billion increase would be used, aside from the construction and rehabilitation of airports, pointing out the apparent conflict between prioritizing the super regions and addressing poverty, and the concern that giving priority to the super regions would have very little impact on the poor, Senator Drilon stated that P8.1 billion would be used for the construction of airports and naviga- tional facilities. He said that it would be very difficult to pinpoint which specific projects arc being funded because those indicated in the 2007 budget have been in the pipeline for the last several years such as the construction of airports in Iloilo and Negros which started during the previous administration. Nonetheless, he stated that P8.416 would be used for the North Luzon Business Quadrangle, P14.5 billion for the Luzon Urban Beltway, P14.5 billion for Central Philippines, P8 billion for Mindanao, and P1l . l billion for projects nationwide, for a total of P56.7 billion in capital outlay.

Asked how much of the entire infrastructure budget would be paid from local funding and foreign sources, Senator Drilon stated that P44.9 billion would be foreign-assisted and P39.6 billion would be locally funded.

Senator Lacson inquired into the government’s policy on’foreign-assisted projects in view of projects that, in effect, violated the Government Procure- ment Act, which includes DPWH projects that went beyond bidding prices; and the DepEd’s so-called textbook scam.

Senator Drilon stated that the policy is set out in the Government Procurement Act. With respect to foreign-assisted projects, however, he explained that the law may allow certain exceptions. He cited as example concessional loans where bidders arc sometimes limited to companies of the country providing the funds. He pointed out that in the conduct of public bidding, under the law, the approved budget for foreign-assisted projects, as defined in RA 91 84, shall be the upper limit or ceiling for the bid, which is a provision that recognizes the peculiarities of loan agreements that the Philippines may enter into.

Between the law of the land and international treaty, asked which would take precedence, Senator Drilon stated that as a matter of general principle, Section 63 of the law recognizes the stipulations in the foreign-assisted projects. He added, however, that should a particular bidding be shown to be in pp”

I 3


violation of the law, Congress should take appropriate action.

Senator Lacson pointed out that in the case of the textbook procurement, it was very clear that collusive practice is not allowed in the agreement between the World Bank and the government. He maintained that when there is interlocking ownership of two or more entities, they should not be allowed to enter into bidding with the government. Senator Drilon expressed willingness to discuss the matter with Senator Lacson to ferret out any erroneous procedure that took place in the particular bidding.

Asked how much of the proposed budget would truthfully express the power of Congress over the purse, Senator Drilon stated that of the proposed P1.126 billion budget, Congress exercises discretion over P67,008,479,000 in unprogrammed appropriation, as P552,226582.00 was appropriated automatically for debt service, internal revenue allotment, retirement and life insurance premiums; and share of local government units in special laws like the Tobacco Act and the Revised Value Added Tax.

MOTION OF SENATOR DRILON

Upon motion of Senator Drilon, there being no objection, the Body closed the period of interpellations on the macroeconomic assumptions of the budget.

DEPARTMENT OF EDUCATION (Continuation)

Senator Drilon presented anew the budget of the Department of Education.


At this juncture, Senator Drilon acknowledged the presence of Secretary Lapus of the Department of Education.

INTERPELLATION OF SENATOR ENRILE

Senator Enrile observed that the 2007 proposed budget of the DepEd and its attached agencies, including the School Building Program, amounts to P134.8 billion or 10.76% higher than the 2006 budget of P121.624 billion.

Senator Drilon stated that the Committee proposed P269 billion for school buildings and hiring of new teachers.

Senator Enrile noted that the CAR and Regions V, VIII, 11, and I have the highest allocations but except for Regions V and VIII, the rest of these regions have the least poverty incidence, while Caraga, ARMM and Region IX which have the greatest poverty incidence have less budgetary support. He inquired into the basis for the regional distribution of the budget.

Senator Drilon replied that the allocation was dictated by the number of enrollees in the primary and secondary levels which likewise dictates the number of classrooms, textbooks, and teachers to be assigned to a particular region.

Senator Enrile pointed out that as far as Gross Domestic Product (GDP) is concerned, Region I1 is the poorest, which he believed is due to inadequate funding and because priority is given to regions in Mindanao and the western side of the country. He agreed with Senator Angara that the most impoverished portion of the country lies along the Pacific Coast running from Cagayan Valley, Isabela, Quirino, Aurora and some parts of Quezon, Bicol, and all the way to Samar, Eastern Samar, Surigao and General Santos. He surmised that the poverty incidence in these areas is largely due to the inability of government to allocate enough resources for the improvement of schools, communication lines, and road systems. Nonetheless, he stated that he was not faulting the Committee for this.

Senator Enrile warned that he would be more severe in his scrutiny of the budget for 2008. On the DepEd budget, he noted the disaggregation, to wit:

Personal Services - P70.89 billion

Benefits of Civilian Personnel - P15.77 billion

MOOE - subsidies and donations - P7.9 billion ~ supplies and materials - P5.45 billion

Capital Outlay -building and infrastructure - P1.8 billion -office equipment, furniture and fixtures

- PI .44 billion.

Moreover, Senator Enrile informed the Body that in the light of a recent presentation by RaquelN

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Castillo, national coordinator of E-Net Philippines, which argued that education is considered as one of the most important contributors to the achievement of the Millennium Development Goals, which is to halve extreme poverty by 2015.

Citing the Education Department Index (EDI) which measures the four components of Education For All (EFA) goals in relation to the MDG targets, namely, gender parity, universal primary education, quality of education, and adult literacy, Senator Enrile disclosed that the Philippines, Thailand and Vietnam are in the intermediate level with ED1 scores of 0.8 to 0.94. With the expenditure on education experiencing a downward trend from 4.5% in the 1990s to 4.2% in the first three years of the new millennium, he asked how the DepEd plans to cope with the situation and whether the country is on track in its MDG and EFA targets.



It was 2:55 p.m.



Senator Drilon confirmed the low probability of meeting the targets in three MDG indicators, two of which pertain to education - the primary education survival rate and the elementary participation rate - mainly because of the lack of resources for the education sector. He disclosed that in a 10-year budget simulation study done by World Bank, the budget for education, in a catch-up scenario, should increase by PI2 billion in 2007 and by P8 billion in the succeeding years until 2015 or a total of P84 billion. He added that only P2.8 billion was added to the education budget for 2007.

As to the quality of education during the catch- up period, Senator Drilon acknowledged the gaps in the competency of the teaching staff for the sciences but this concern, he said, is being addressed through intensified teacher-training programs and better recruitment processes. He cited Senator Angara’s suggestion that majors in the sciences and mathematics be given priority in the hiring of new teachers next year.

Asked when this poor state of education in the country started, Senator Drilon assumed that the negative trend started when the country experienced unmanageable budget deficits so that all services, especially education, suffered. He cited the gargantuan foreign debt which ate up a major portion of the country’s resources.

Moreover, Senator Drilon affirmed the observation that education deteriorated despite the expansion of higher educational institutions, including SUCs. With an annual budget growth of 2% that does not even respond to the 5% to 6% inflation rate, he pointed out that indeed, the quality of spending, particularly on education, would suffer as a result. On the other hand, he asserted that the budget under debate is a catch-up budget which, if the same growth is maintained, should be able to come up to the World Rank standard by 2015. He cautioned, however, that even if the budget increases by 11% every year, the country would still lag behind other economies in the region whose national budgets grow by 20%.

On a related matter, Senator Enrile cited the 11.2 million Filipinos who are illiterate. He said that the continuous increase in the DepEd budget is not enough to cover the incremental requirements and the backlog in basic educational facilities and resources as 85% of the department’s budget is allocated for PS while the remaining 15% is divided between capital outlay and MOOE. Citing international standards, he stated that 15% of the DepEd’s budget should be spent for MOOE just to maintain the quality of basic education. Additionally, he pointed out that the Philippines allots only 3% of its national income to education which is far below the UNESCO- prescribed standard of 6% of GNP. He asked how education is doing, given last year’s allocation.

Senator Drilon said that the classroom-student ratio is 1:45, indicating a total backlog of 20,587 classrooms for double-shifts, and 30,906 classrooms for one-shift. He said that the amount of P5.2 billion for the construction of 12,226 of the 20,587 double- shift classrooms had been provided for in the President’s budget; however, the Committee added P4 billion to fund an additional 8,362 double-shift classrooms so that once the budget is approved, the Senate could assert that it has successfully covered the classroom backlog on a ratio of 1 :45 double-shift.

On the teachers shortage, Senator Drilon said that it stands at 16,390. In this regard, he informed the &-

774 TI-IURSDAY. NOVEMBER 23,2006

Body that the President’s budget provided for 10,000 new hires and the Committee added P700 million to further close the gap.

Asked about the students-to-teacher ratio, Senator Drilon stated that with 467,930 teachers, the teacher-students ratio is 1:39; however, he said that the figure is a theoretical ratio because there are certain localities with higher ratios. Moreover, he said that because of the Magna Carta for Teachers, the DepEd does not have much discretion in moving teachers around to address the acute shortage in areas where there are unusually high number of enrollees. He explained that the government is opting for a I :45 teacher-students ratio, because there are not enough classrooms.

In reply to other queries, Senator Drilon said that a double-shift classroom is used for six hours per shift or a total of 12 hours for two shirts by different grade levels and two teachers per day. He added that the Magna Carta for Teachers requires teachers to work only six hours a day and teach all the subjects in one grade level.

Asked on the budgetary requirement to achieve the ideal situation, Senator Drilon said that based on the President’s budget, the unfunded portion of the DepEd requirement for 2007 is P13.6 billion, and the Committee provided P2.8 billion, putting the shortage at approximately PI1 billion. He affirmed that PI3 billion would cover the shortage of 30,000 classrooms on a one-shift basis; 16,390 teachers on a ratio of 1 teacher to 45 students; 1.34 million desks; and 36 million textbooks.

Senator Enrile asked if the computation of shortages was based on accurate statistical records on population growth. Senator Drilon said that the computation was based on a school-by-school count.

On whether the computation did not provide for repair or replacement of existing facilities, Senator Urilon said that for the first time, under the supplemental budget, PSOO million was allocated for repairs, upon the request of the DepEd secretary. Owing to the P800-million damage to school buildings wrought by typhoons Milenyo and Pneng, he disclosed that the Committee also created a Quick Response Fund to be used for the repair or construction of school buildings destroyed by disasters and calamities. He said that the P800-million damaged school buildings are still considered existing facilities and have not

been included in the PI3 billion shortage. In fact, he said, the World Bank estimates that P40 billion would be needed to repair all the damaged edifices, that is, 70% of all the classrooms that are in various states of disrepair.

Senator Enrile recalled that when he was starting school, there was a community spirit and it was the parents of students - not the government-who built the schools. He asked why this could not be done today. Senator Drilon assumed that the parents today would build their houses first before building schools.

Replying to further queries, Senator Drilon said that the government recognized the need for a basic literacy program and an accreditation equivalency program, considering that 11 million of the population aged 6 to 24 are out of school and have no access to the educational system. However, he acknowledged that the programs are totally inadequate.

Senator Enrile stated that his interest in alternative learning systems stems from the fact that very young children in the rural areas cannot go to school because they help their parents to fish and farm. He believed that alternative learning systems would at least allow them to read and write their names. He lamented that many of the people in his own district in Cagayan cannot sign documents, so they affix their thumbmarks. Senator Drilon said that the same is happening all over the Philippines.

Expressing support for the move to create a subcommittee under the Committee on Education, Arts and Culture, Senator Enrile asked on the achievements of the alternative learning program. Senator Drilon replied that the funds for the program have not been much utilized. For 2007, he said that the budget for the alternative learning program is P230.140 million, a measly .17% of the DepEd’s budget, or an allocation of about P20 per capita.

At this point, Senator Enrile read the following into the record:

A National Statistics Office 2003 survey indicated enrolment levels were lowest in the poverty-stricken Muslim region in Mindanao, where only half of children and youth are in school or college. Eighteen percent of children are not enrolled in primary schools, a figure that rises to 40% for secondary school and 66% for college level.

& kb


The survey also found that 1 to 10 Filipinos aged between 10 and 64 could not read or write at all. Females have a higher illiteracy rate of 90.4% compared to males of 86.8%. Two in ten Filipinos are functionally illiterate or lack numeral skills and are unable to perform addition, subtrac- tion, multiplication or division.

Functional illiteracy is worse among the Filipino poor where three in ten cannot compute for lack of numerical skills. They cannot even count their fingers. Filipino students performed dismally compared with students in other countries in the latest Trends in International Mathematics and Science Study (TIMSS). The Department of Science and Technology (DOST) revealedthat Filipinos placed 41st and 42nd in the mathematics and science examination taken by high school students in 45 countries in 2003.

Furthermore, the performance of elementary students in both mathematics and science ranked 23rd from among 25 participating countries.

TIMSS revealed that only seven of the Philippines’ 15 regions showed improved skills and competency in mathematics, while six regions improved in science education, while Regions II , VIII, IX. X and XI1 did not show improvements, as far as the international mathematics and science benchmarks are concerned.

Asked on the reasons for the poor performance of Filipino students, Senator Drilon surmised that the major cause of the very poor showing of Filipino students in science and mathematics is that teachers handling these subjects are not science and mathematics majors .--that 58% of science teachers in the country are not science majors; 56% are not biology majors; 66% are not chemistry majors; 73% are not physics majors; and 20% are not math majors.

Asked on the measures being undertaken to address the problem, Senator Drilon replied that the Committee has allocated nearly PI billion for teachers training and has assibmed a certain percentage of the 16,000 teachers to be hired for majors in general science, biology, chemistry and physics. He added that the CHED Chairman has agreed to the assignment of a specific portion of the development fund for science scholarships.

Asked how much time and nioney would be needed to address the problem of poor quality tertiary- level graduates, Senator Drilon stated that he would

provide Senator Enrile with the necessary information in a couple of days.



It MILIS 3:39 p.m.



Senator Enrile noted that the proposed CHED budget of PI. I 16 billion for 2007 reflects an increase of P40.539 million or 3.77% over its P1.076 budget in 2006. He pointed out that the biggest concern that continues to haunt CHED is the prevalence of so-called diploma mills and the agency’s inability to regulate them. He asked how CHED pushes for the improvement of the quality of higher education in view of a limited budget of P624,657 for each of the 1,787 higher education institutions (HEIs). Senator Drilon replied that one of the measures being undertaken by CHED is the review of the performance of the HEIs; and it also closes courses where the percentage in passing the board examinations is very low.

Senator Enrile expressed concern over the quality of education that the 52,013 CHED scholars would get considering that CHED’s annual allocation per scholarship is only P8,500. Senator Drilon said that the Committee had requested CHED to submit a revised program by the end of January 2007. He stated that in the meantime, the scholarship hnding shall be redirected to programs on science and technology development.

INTERPELLATION OF SENATOR RECTO

Senator Recto noted that it appeared from the debates that many of the problems in the education sector lie in the lack of resources. In this regard, he pointed out that the E-VAT Law provides that 50% of incremental revenues shall be given to the local government units (LGUs), of which, 15% has been earmarked for the School Board Fund. He said that since there is a PI00 billion VAT collection this year, it would translate to a P7.5 billion share for LGUs with respect to education concerns. Senator Drilon said that in the 2007 budget, there is an item on the


share of the LGUs in the E-VAT Law but it is only about P3.5 billion.

Upon further queries, Senator Drilon clarified that the DepEd 2007 budget is P126,249,995,000, including the committee amendments; and the School Board Fund is PI4 billion. Senator Recto concluded that the total expenditure on education is therefore PI26 billionplus P14 billion.

Citing the study of Professor Briones and her group, Senator Recto pointed out that it shows a resource gap in education expenditure amounting to P40 billion a year, which apparently did not take into account the PI4 billion School Board Fund. Senator Drilon asserted that the amount is overstated because according to the World Bank study, “for a catch-up scenario, which means that the DepEd budget should grow by 11% for the initial year 2006, we needed PI2 billion to wipe out all the resource shortages and thereafter stabilize at about P8 billion for the succeeding years until 2015.”

Asked on the international standard on education expenditure for elementary and high school education as a percentage of GDP, Senator Drilon bared that it is 6% but the Philippines is spending half, or 3%. He agreed that based on that standard, the gap is PI25 billion and he attributed this to competing priorities in the budget.

Senator Recto underscored that the most important asset of the Philippines is its people but they have to be educated properly so that the country could become ecouoniically competitive. He pointed out that there is an indirect relationship between the number of pupils who finish elementary education, and poverty incidence. It is not surprising, he concluded, that 40% of the population live below the poverty line because an equal percentage do not finish elementary education. Senator Driloii agreed, saying that education is the key to poverty alleviation. He affirmed that the cohort survival rate is 63% and the dropout rate for Grades I to 111 is 25%.

Given the 63% cohort survival rate, Senator Recto sunnised that uneducated parents do not put much value in education. Senator Drilon maintained that Filipinos put much value in education but factors like poverty prevent parents from sending their children lo school. He agreed to the observation that indigent families would rather keep their children at home, where they could help in the backyard industries and thereby sustain the Families.

Asked what congressional interventions are needed to address this problem, Senator Drilon believed that Congress must address two sectors that have the greatest multiplier effect on poverty alleviation - infrastructure and agriculture.

On another matter, Senator Recto asked whether a food-for-school program could help malnourished pupils as well as families who are the poorest of the poor. He posited that a rice distribution program would, in fact, encourage parents to send their children to school because the rice subsidy would help feed the family. Senator Drilon believed that rather than giving doleouts, the country’s limited resources should be used to give these families the wherewithal to fend for themselves. He stated that precisely, the Committee had redirected funds for post-harvest facilities to boost the income of farmers and fisherfolk.

But Senator Recto argued that the program could achieve two objectives at the same time - entice families to send their children to school and help feed families. Senator Drilon stated that the implementation of this program was questionable because it did not serve the purpose of encouraging children to go to school. In fact, he said, the children were given rice even during the summer break and tons of rice were imported for the program. He conceded that the program has a positive effect on alleviating hunger but he doubted whether the school system should be used to achieve this objective. He disclosed that the Members of the House preferred to have a school-feeding-program implemented right in school and in the GAB, there is a provision prohibiting pupils from taking home the food given them. He recalled that he himself implemented a school- feeding program a few years back and it impacted attendance and the dropout rate, apparently because the children were encouraged to attend school where they were fed. He noted that he and Senator Recto do not disagree that the rice-distribution program could alleviate the hunger incidence, however, they disagree over the use of the school system for that purpose, as he added that the program could be handled by another agency. He clarified that the provision for a school-based nutrition feeding program includes not only milk but also eggs, cocoa, pan tic sol and vegetable-based noodles.

Asked on the DepEd budget for 2006, Senator Drilon said that it was P112,165,484,000 under the 2005 reenacted budget and an additional P9.5 billion, for a total of PI21 billion; on the other hand, the


proposed DepEd budget for 2007 is P126,264,965,000, or an increase of about 4% over the previous year.

Upon further queries, Senator Drilon affirmed that taking inflation into account, the 2007 DepEd budget is lower than that in 2006.

Regarding the hiring of teachers, Senator Drilon said that under the supplemental budget for 2005, DepEd was allowed to hire 10,000 teachers and an equal number under the reenacted and supplemental budget for 2006; and the 2007 budget allocates a budget for the hiring of 16,000 teachers.

Senator Recto asked why the staffing summary submitted to Congress did not indicate that teachers were hired in 2006. Further, he noted that the DepEd, which is the biggest government organization, had 521,000 employees i n 2005, but only 520,976 iii 2006. Senator Drilon explained that the staffing suinmaly report was submitted to the Committee before Congress passed the supplemental budget which contained a P637,015,000 appropriation for the creation of new teaching and nonteaching positions in 2006.

To the observation that the staffing pattern for 2007 does not jibe with the NEP provision for 10,000 teachers, Senator Drilon conceded that there was an error as he maintained that aside from the NEP provision for 10,000 new hires, the Committee set aside appropriation for the creation of 6,300 additional positions.

I n light of the P300-billion discretionary funds allocated to the Office of the President and the P200 billion increase in the 2007 budget, Senator Recto asked why only P5 billion was added to the DepEd budget, despite the fact that its personnel make up almost 45% of the bureaucracy. Senator Drilon explained that two factors - the limitation on the programmed deficit and the absorptive capacity of the DepEd -- were taken into account in the crafting of the NEP for that department. He said that when the Committee set aside another P4 billion for the school building program, it took into consider-ation the fact that the capital outlay is for two years and as such, the program could not be completed in 2007. He pointed out that there is already a PI billion appropriation for the school building program.

On the DepEd’s absorptive capacity, Senator Drilon conceded that the DepEd might not be able to absorb additional funds because in the matter

of teachers training, the nearly PI billion allocation is the limit of its ability to spend for the program. He added that there was a suggestion, in fact, to contract out teachers training.

In that case, Senator Recto noted that even though part of the P67 billion unprogrammed fund could be used to improve the ability of the DepEd to undertake its mission and objectives, there is no need to look for additional resources for the DepEd that it cannot absorb anyway. Senator Drilon said that P30.5 billion of the P67 billion for unprogrammed funds has been set aside for infrastructure and social services.

To the suggestion that the money be given to the DepEd rather than left as lumpsum item in the unprogrammed fund, Senator Drilon agreed, saying that upon his request, the DBM had submitted the details on the planned utilization of the P30.5 billion. He said that the Committee was reviewing the document to see if some of the unprogrammed fund could be redirected to the education sector should the need arise.

Senator Recto asked where the government sourced the funds that went into the increase in the DepEd school building program considering that the House allocated P2.760 billion and the Senate P1.76 billion, or a reduction of PI billion. Senator Drilon clarified that the total increase over the NEP is P2,069,000,000. He said the House transferred P1 billion from the budget of the DepEd to the school building program as a lumpsum appropriation, thereby increasing it to P2 billion; however, the Senate restored the PI billion to the DepEd budget, thereby maintaining the PI billion budget level of the school building program as well as augmenting it from other items.

To the suggestion that the P1.8 billion increase for the DepED budget in the Senate version be hiked even further through the unprogrammed fund without affecting the national deficit, Senator Drilon maintained that the GAB already has allocation for schoolroom and teachers shortages - the two biggest items in the DepEd budget - but he would be willing to hear suggestions on how any additional amount could be utilized. He added that he would consult the DepEd on this matter.

Senator Recto suggested that the monies be used to increase the DepEd budget for alternative learning systems, teachers training, additional MOOE ,+


for all national high schools, health and nutrition program, and the national education test development, among others. He said that he would present his amendments to the Committee after he shall have consulted the education secretary and Senator Drilon.

SUBMISSION OF THE BUDGETS OF THE DEPARTMENT OF EDUCATION AND CHED

Upon motion of Senator Drilon, there being no objection, the budget of the Department of Education and the Commission on Higher Education (CHED) was deemed submitted for the Body’s consideration.



It was 4:2H p m


At 4:44 p m , the session was resumed.

DEPARTMENT OF AGRARIAN REFORM, AGRARIAN REFORM FUND, AND THE NATIONAL COMMISSION ON INDIGENOUS PEOPLES

Senator Drilon presented the budget of the Department of Agrarian Reform (DAR), the Agrarian Reform Fund, and the National Conmission on Indigenous Peoples (NCIP).

Senator Drilon stated that the Committee did not reduce the DAR budget although it transferred P1.096 billion for the TWay Ng Parigdo Para Sa Magsnsakca from DAR to DI’WH, with the DAR having the authority to designate the community where the infrastructure should be located and the DWPH, the task to execute the project. Upon the request of Senator Recto and the agency, he said that the Committee has incorporated a special provision in the DAR budget which states that the amounts needed to redeem the outstanding bonds, including the interests thereon for the landowners whose Landbank bonds would be maturing in 2007, are automatically appropriated and included as part of the debt service program of the government, He disclosed that the total compensation for the

landowners whose bonds are maturing for 2007 is approximately P5.42 billion, but the General Appropriations Bill is allocating only P3.4 billion. He explained that the rationale behind the special provision is that if Congress can automatically appropriate interest payments for foreign creditors, there is no reason why it should not automatically appropriate interest payments for bondholders whose lands were subjected to laud reform; and equity dictates that Congress should give equal, if not superior treatment, to holders of foreign bonds which are evidence of indebtedness by the Philippine government. He stated that the DAR and the Agrarian Reform Fund would have approximately P2 billion more under the special provision.

As regards the NCIP budget, Senator Drilon stated that the Committee did not make any reduction; it only transferred the P20 million for scholarships for indigenous peoples to the CHED.

SUBMISSION OF THE BUDGETS OF THE DEPARTMENT OF AGRARIAN REFORM, AGRARIAN REFORM FUND, AND THE NATIONAL COUNCIL FOR INDIGENOUS PEOPLES

Upon motion of Senator Drilon, there being no objection, the budgets of the Department of Agrarian Reform, the Agrarian Reform Fund, and the National Commission on Indigenous Peoples were deemed submitted for the Body’s consideration.



It was 4:49 p.m

RESUMPTlON OF SESSION

At 4 5 7 pm., the session was resumed

DEPARTMENT OF LABOR AND EMPLOYMENT

Senator Drilon presented the budget of the Department of Labor and Employment.

Senator Drilon stated that the new appropriation proposed by the Connnittee for the Department of Labor and Employment is P4,643,149,000 which is


P201 million lower than the NEP and P249.906 million lower than the General Appropriations Bill. He said that the cuts consist of the Scholarship Fund for TESDA which was transferred to the CHED, and PI million in Confidential and Intelligence Fund which is an across-the-board cut that applied to all agencies.

INTERPELLATION OF SENATOR EJERCITO ESTRADA (4

Preliminary, Senator Ejercito Estrada (J) stated that both the employer and labor sectors are persistently complaining about the slow pace of the adjudication of labor cases by the National Labor Relations Commission (NLRC). He asked to be updated on the implementation of RA 9347 that seeks to strengthen the NLRC, particularly on the creation of three additional NLRC divisions in Luzon. Senator Drilon stated that the three divisions in Luzon have not yet been created. He added that funding for the 4'h and 5"' Divisions of the NLRC were not included in the 2007 NEP which was crafted before the law was passed.

Asked how much would be needed to fully implement the law, Senator Drilon stated that P210 million is needed to set up one division but the amount is only for PS and MOOE and does not even include the capital outlay for equipment.

Senator Ejercito Estrada (J) opined that the allocation in the GAB for the adjudication of labor cases is already low and that the Committee has further reduced it by P10 million. Senator Drilon explained that the Committee did not single out the NLRC, but the cut was part of the general reduction of the GAB to bring it down to the level of the NEP.

As regards the activities and services that would be affected by the reduction, Senator Drilon cited the MOOE under general administration for fixed expenses which consists of travel expenses, P1 million; utility expenses, P500,OOO; communications expenses, P2.S million; supplies, P1 million; repairs and maintenance, P1 million; rent, P2 million; and bonded warehouse rent, P2 million.

Asked if an amendment to restore the PI0 million in the NLRC budget would be considered by the Committee at the proper time, Senator Drilon replied that the Committee would look into the reason for the additional expenses for rent of office space and bonded warehouse.

Asked why there are many undocumented OFWs in Lebanon, Senator Drilon maintained that there are many reasons, foremost of which is the lack of employment opportunities at home. For instance, he said, one was enticed to leave the country without a contract upon the representation of a relative or an acquaintance. Upon further query, he affirmed that about 60% to 65% repatriated OFWs from Lebanon were undocumented but many of them have stayed in that country for the past decade and have married Lebanese citizens.

On whether an illegal recruiter is usually involved in the deployment of an undocumented OFW, Senator Drilon clarified that an illegal recruiter is involved in some instances but in other instances, the worker himselWherself is able to leave because of connections with relatives or friends abroad and when the contract and visa expire, the worker simply overstays and becomes undocumented.

As to the role of the POEA in the eradication of illegal recruitment, Senator Drilon explained that it is preventive through the conduct of pre-departure orientation seminars, and remedial through provision of legal remedies to victims of illegal recmitment. Upon further query, he pointed out that illegal recruitment carries heavy penalties depending on the number of complainants; and syndicated illegal recruitment is a nonbailable crime with a penalty of life imprisonment.

Moreover, Senator Drilon informed the Body that POEA apprehends illegal recruiters in coordination with law enforcement agencies like CIDG and PNP. He disclosed that the agency has apprehended about 160 illegal recruiters for the year 2006. On a related matter, he said that the case of the Sentosa Recruitment Agency, subject of Senator Pimentel's privilege speech, is being heard at the adjudication branch of POEA. He clarified that POEA lifted the suspension order against the illegal recruiter of 28 nurses primarily to allow a number of other recruited medical workers with complete documentation to leave for employment. On whether the letter of U.S. Senator Schumer and the calls of Secretary Defensor influenced the decision of POEA, he believed that the issue had been resolved.

Finally, Senator Ejercito Estrada (J) moved for the deferment of the DOLE budget in the absence of the chairman of the National Labor Relations + Commission.




It was 5:19 p.m,



Upon resumption, Senator Ejercito Estrada (J) withdrew his motion to defer the budget of DOLE

SUBMISSION OF THE BUDGET OF TIIE DEPARTMENT OF LABOR AND EMPLOYMENT

Upon motion of Senator Drilon, there being no objection, the budget of the Department of Labor and Employment and its attached agencies, except NLRC, was deemed submitted,



It w m 5:22 p.m.



DEPARTMENT OF SCIENCE AND TECHNOLOGY

Senator Drilon presented the budget of the Department of Science and Technology (DOST). He said that under the National Expenditure Program, the total appropriation for the department is P3,290,319,000, plus an allocation for the Retire- ment Pension Fund of P88,194,000, for a total of P3,378,513,000. He disclosed that the GAB increased this amount to P3,788,513,000, ofwhich P3,700,3 19,000 constitutes new appropriation; however, the Committee brought the appropriation down to P3,579,513,000, constituting P88,194,000 for RLIP and new appropriation of P3,491,319,000 or an increase of P209 million over the President’s budget. He explained that the Committee allowed an increase in capital outlay to cover the purchase of two Weather Doppler Radars, one for Malaybalay, Bukidnon and the other

for Davao, which would enable PAGASA to predict the amount of rainfall of storms/typhoons.

MANIFESTATION OF SENATOR PIMENTEL

Senator Pimentel expressed support for the increase in the DOST budget which, he believes, is the most underrated, underfunded and under-used department of government. He also stressed the need to harness the expertise of Filipino scientists for economic development.

On the suggestions to use some amounts from the road user’s tax to fund the Biofuels Act, Senator Pimentel believed that the DOST is the lead agency to get this law off the ground. He said that he would submit an amendment to increase the DOST budget by a few billion pesos for the iniplementation of the Biofuels Act.

SUBMISSION OF THE BUDGET OF THE DEPARTMENT OF SCIENCE AND TECHNOLOGY

Upon motion of Senator Drilon, there being no objection, the budget of the Department of Science and Technology was considered submitted for the Body’s consideration.



It was 5:48 p.m


At 5:50 pm. the session was resumed.

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

Senator Drilon presented the budget of the Department of Environment and Natural Resources.

He stated the NEP has proposed a new appropriation of P7,058,820,000 for the DENR; the GAB proposed an increase of P67 billion that the Committee reduced by P181,720,000, for a new appropriation of P6,944,100,000.

He explained that the Committee deleted P114,720,000 from the pilot implementation of the

THURSDAY. NOVEMBER 23.2006 78 1

Integrated Watershed Management and Sustainable Development Project being implemented by the River Basin Control Office because Section 3 of Executive Order No. 510, which created the Office, allots the sum of P500 million for planning, implementation and management of the river basin projects. hi fact, he said that over PI00 million has already been released for this project but it is unutilized.

Lastly, Senator Drilon stated that the Committee deleted the House insertions to bring back the budget to the NEP level.


At this juncture, Senator Drilon acknowledged the presence Environment and Natural Resources Secretary Angelo Reyes.

INTERPELLATION OF SENATOR MADRIGAL

At the onset, Senator Madrigal queried on the extent of the DENRs consultation with the Executive with regard to the Japan-Philippines Economic Partnership Agreement (JPEPA). Senator Drilon replied that the position of the DENR is that in case the JPEPA contained provisions that are contrary to domestic laws, the domestic laws would be applied.

Presuming that the DENR was not consulted before the signing of the JPEPA, Senator Madrigal inquired whether the department was able to review the document. Senator Drilon replied that the fornier DENR secretaiy was given a copy of the agreement for his comment, and when Secretary Reyes took over in early February, he was also asked to comment on the same.

Asked which office in the DENR undertook the study on the JPEPA, Senator Drilon replied that it was the Office of Undersecretary for Policy and Plauning, Mr. Mat Ignacio.

Upon further query, Senator Drilon affirmed that the position ofthe Environmental Management Bureau and the Solid Waste Management Commission on the agreement was sought.

Senator Madrigal inquired on the technical and scientific niethods that were used by these offices in their study.



It was S:S9 p.m


At 6:Ol p.m., the session was resumed.

Upon resumption, Senator Drilon admitted that the JPEPA should be closely scrutinized when it is submitted to the Senate for ratification in view of the commitments of the Philippines under the Basel Convention which may not be contravened by the said agreement; and the agreement must be tested against the country’s laws. He gave assurance that the DENR would be invited to state its position when the time comes.

Senator Madrigal said that she precisely wanted to know what scientific methodology was used by the DENR in arriving at its conclusion in the light of the Basel Convention. Senator Drilon said that the committee hearings would ferret out the infomiation.

Senator Madrigal suggested that to save time, the DENR should start testing the ash in Novaliches, the dumping site of toxic waste from Trece Martirez. Senator Drilon said that the Committee has been assured by the DENR that it would conduct the test and be ready with its findings once the Senate hearings on the agreement begins.

As to the position of the DENR on the Basel Convention to which Japan and the Philippines are signatories and the Basel Ban Agreement to which neither Japan nor the Philippines is a sibaatory, Senator Drilon reiterated that the position of the DENR is that the JPEPA is subject to national laws and regulations, particularly Republic Act No. 6969, and the Basel Convention.

Asked if the DENR would endorse the signing of the Basel Ban Agreement, Senator Drilon replied that the country is a signatory to the Basel Convention which has been amended to specifically prohibit the movement of wastes from developed to developing countries. However, he said that there are two schools of thought on the matter: one, whether or not the Philippines, as a signatory to the original

P

782 TNURSDAY, NOVEMBER 23.2006

convention, is bound by the amendment; and two, whether or not it should sibm the amendment as a separate document.

Acknowledging that the matter is not an easy legal issue, Senator Drilon requested Senator Madrigal to allow the DENR to submit a position paper on the matter at the proper time.

Should the DENR endorse the signing of the Basel Ban Agreement, Senator Madrigal posited that the onerous provisions in the JPEPA would be considered null and void.

Scnator Drilon reiterated the position of Secretary Reyes that the domestic law is superior in application and R.A. No. 6969 would continue to be in force and effect, evcn if thc JPEPA was ratified by the Senate. He staled that the DENR’s position on the agreement has been submitted to the DTI.

Senator Madrigal expressed hope that the DENR would uphold the rights of the Filipinos in the enforcement of the JPEPA. She said that her office has been receiving reports regarding the illegal trade in lead battery acid, scrap lead battery acid, and automobile battery acid from industrialized countries like Japan and Korea. She stressed the need for the DENR to look into the matter as these hazardous wastes pollute Philippine water tables and rivers. Senator Drilon gave assurance that the DENR would submit a report on the matter.

INTERPELLATION OF SENATOR CAYETANO

Senator Cayetano stated that she shares the sentiments of Senator Madrigal on these issues which the DENR would have to look into.

Asked by Senator Cayetano on the status of the cadastral service and the maps and surveys, Senator Drilon confirmed that the maps are in a state of disarray not only due to the recent typhoons but also to other past events. For this reason, he said, the Cadastral Survey Program is being undertaken and was allocated P200 million in the 2007 budget.

Senator Cayetano observed that a number of the country’s rivers are being made depositories of industrial, domestic and home-based business wastes. She asked whether the DENR has a comprehensive program to resolve this problem. It1 reply, Senator

Drilon stated that precisely, the River Basin Control Office was created under Executive Order No. 510, dated March 5, 2006, and Section 3 thereof states that the Office, together with the DPWH, shall rationalize the various existing river basin projects such as but not limited to the following: Mt. Pinatubo, Hazard Urgent Mitigation; Iloilo Flood Control: Lower Agusan Flood Control; Bicol River Basin and Watershed Management; Agno River and Allied Rivers Flood Control; Camanava Flood Control; and Pasig Rehabilitation. He informed the Body that the Pasig River rehabilitation project was allocated more than P400 million in the 2007 budget.

Asked whether the project seeks to check pollution at its sources, Senator Drilon replied that the officers of the Pasig River Rehabilitation Commission would be able to answer queries on the project when the agency’s budget is presented for the Body’s consideration,

SUBMISSION OF THE BUDGET OF THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

Upon motion of Senator Drilon, there being no objection, the budget of the Department of Environment and Natural Resources was deemed submitted for the Body’s consideration.

MONDAY’S AGENDA

Senator Drilon announced that on Monday, November 27, the budgets of the following agencies would be considered

I n the morning:

Judicia? (Supreme Court, lower courts, Presidential Electoral Tribunal, Sandiganbayan. Court of Appeals. Court of Tax Appeals)

Civil Service Commission Commission on Human Rights Department of Foreign Affairs Department of Justice and its attached agencies

I n the nfternoon:

Department of Tourism Department of Transportation

and Communications

At this juncture, Senator Drilon instructed the staff to inform the offices of the senators of the + schedule.

b

THURSDAY. NOVEMBER 23.2006 7x7

FOURTH ADDITIONAL REFERENCE OF BUSINESS



Letters from the Secretary General of the House of Representatives, informing the Senate that on 14 November 2006, the House of Representatives passed the following House bills in which it requested the concurrence of the Senate:


AN ACT PROVIDING FOR THE CONSTRUCTION OF RO-RO FERRY LANDING FACILITIES AT THE CEBU CITY PIER AND AT THE MUNICIPALITY OF CORDOVA, AND A COASTAL ROAD FROM THE MUNICIPALITY OF COKDOVA TO LAPU-LAPU CITY AND APPRO- PRIATING FUNDS THEREFOR

To the Committees on Public Works; Public Services; and Finance

House Bill No. 803. entitled

AN ACT CONVERTING THE NORTHERN SAMAR PROVINCIAL HOSPITAL IN CATARMAN, NORTHERN SAMAR INTO EASTERN VISAYAS REGIONAL HOSPITAL UNDER THE SUPER- VISION, CONTROL AND MANAGE- MENT OF THE DEPARTMENT OF HEALTH

To the Committees on Health and Demography; and r' + mance


AN ACT CREATING A SPECIAL ECONOMIC ZONE IN THE PROVINCE OF DAVAO ORIENTAL, CREATING FOR THIS PURPOSE THE DAVAO ORIENTAL SPECIAL ECONOMIC ZONE AUTHORITY,

APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

To the Committees on Economic affairs; Local Government; Ways and Means; and Finance


AN ACT ESTABLISHING A SPECIAL ECONOMIC ZONE AND FREEPORT IN THE MUNICIPALITIES OF GUIUAN, MEKCEDES AND SALCEDO, INCLUDING THE ISLANDS OF HOMONHON, MANICANI, SULUAN AND CALICOAN, PROVINCE OF EASTERN SAMAR, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES

To the Committees on Economic affairs; Local Government; Ways and Means; and Finance


AN ACT UPGRADING THE NUEVA VIZCAYA SUBDISTRICT ENGINEER- ING OFFICE INTO A REGULAR DISTRICT ENGINEERING OFFICE TO BE KNOWN AS THE NUEVA VIZCAYA SECOND DISTRICT FNGINEERING OFFICE AND APPRO- PRIATING FUNDS THEREFOR

To the Committees on Public Works; and Finance


AN ACT CREATING A SEPARATE DISTRICT ENGINEERING OFFICE IN THE SECOND CONGRESSIONAL DISTRICT OF QUEZON CITY AND APPROPRIATING FUNDS THEREFOR

To the Committees on Public Works; and Finance


AN ACT PROVIDING FOR A LIGHT RAIL TRANSPORT (LRT) OR MONORAIL OR ANY OTHER APPROPRIATE MODERN MASS TRANSPORT SYSTEM -4-


IN CEBU CITY AND METRO CEBU AND A RAILWAY SYSTEM FROM CEBU CITY TO THE NORTHERN AND SOUTHERN TIPS OF THE PROVINCE OF CEBU, AND APPRO- PRIATING FUNDS THEREFOR

To the Committees on Public Services; and Finance


AN ACT ESTABLISHING A NATIONAL HIGH SCHOOL IN BARANGAY TAMING, MUNICIPALITY OF DANAO, PROVINCE OF BOHOL T O BE KNOWN AS THE TAMING NATIONAL

ING FUNDS THEREFOR HIGH SCHOOL AND APPROPRIAT-

To the Committees on Education, Arts and Culture; and Finance


AN ACT SEPARATTNG THE PAGADIAN CITY NATIONAL HIGH SCHOOL - ANNEX IN BARANGAY LOWER SIBATANG, PAGADIAN CITY, PROVINCE OF ZAMBOANGA DEL SUR FROM THE PAGADIAN CITY NAlTONAL HIGH SCHOOL IN BARA- NGAY DANLUNGAN, PAGADIAN CITY, PROVINCE OF ZAMBOANGA DEL SUR AND CONVERTING IT INTO AN INDEPENDENT NATIONAL

THE OTTO LlNGUE NATIONAL HIGH SCHOOL AND APPROPRIAT- ING FUNDS THEREFOR

HIGH SCHOOL TO BE KNOWN AS



AN ACT ESTABLlSHING A NATIONAL HIGH SCHOOL IN BARANGAY LUBANG, MUNICIPALITY OF BUENAVISTA, PROVINCE OF BOHOL TO BE KNOWN AS THE LUBANG NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR



AN ACT ESTABLISHING A NATIONAL HIGH SCHOOL IN BARANGAY SIKATUNA, MUNICIPALITY OF TALIBON, PROVINCE OF BOHOL TO BE KNOWN AS THE SIKATUNA NATIONAL AGRICULTURAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR



AN ACT SEPARATING THE M A N T NATIONAL HIGH SCHOOL - MAINIT ANNEX IN BARANGAY MAINIT FROM THE MACO NATIONAL HIGH SCHOOL, MUNICWALITY OF MACO, PROVINCE OF COMPOSTELA VALLEY A N D CONVERTING THE SAME INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE MALNIT NATIONAL

ING FUNDS THEREFOR HIGH SCHOOL AND APPROPRIAT-



AN ACT ESTABLISHING A NATIONAL HIGH SCHOOL IN BARANGAY SAN AGUSTIN, MUNICIPALITY O F TALIBON, PROVINCE OF BOHOL TO BE KNOWN AS THE PRESIDENT CARLOS P. GARCIA MEMORIAL NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR



AN ACT SEPARATING THE VALENZUELA NATIONAL HIGH -&

P

TI-IURSDAY, NOVEMBER 23,2006

SCHOOL - MAPULANG LUPA ANNEX IN BARANGAY MAPULANG LUPA, VALENZUELA CITY, METRO MANILA FROM THE VALENZUELA NATIONAL HIGH SCHOOL, CON- VERTING lT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE MAPULANG LUPA NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR


House Bill No. 5777. entitled

AN ACT SEPARATING THE DINGLE NATIONAL HIGH SCHOOL - SAN MATIAS CAMPUS IN BARANGAY SAN MATIAS, MUNICIPALITY OF DINGLE, PROVINCE OF ILOILO FROM TIE DINGLE NATIONAL HIGH SCHOOL. CONVERTING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE RUFINO G. PALABRICA, SR. MEMORIAL NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR

To the Committees on Education, Arts and Culture and Finance


AN ACT SEPARATING THE CANINGAY NATIONAL HIGIH SCHOOL -- CANDONI EXTENSION IN BARANGAY WEST, MUNICIPALITY OF CANDONI, PROVINCE OF NEGROS OCCIDENTAL FROM THE CANINGAY NATIONAL HIGH SCHOOL, CONVERTING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE QUERICO G. MANZANO NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR



AN ACT SEPARATING THE DAPA NATIONAL HIGH SCHOOL - MARIANO MATUGAS MEMORIAL NATIONAL HIGH SCHOOL ANNEX IN BARANGAY TUBURAN, MUNI- CIPALITY OF DEL CARMEN, PROVINCE OF SUFUGAO DEL NORTE FROM THE D N A NATIONAL HIGH SCHOOL, CONVERTING IT lNTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE MARIAN0 MATUGAS MEMORIAL NATIONAL HIGH SCHOOL AND APPROPRIATING FUDS THEREFOR



AN ACT ESTABLISHING A NATIONAL HIGH SCHOOL IN BARANGAY HANDUMON, MUNICIPALITY OF GETAFE, PROVINCE OF BOHOL TO BE KNOWN AS THE HANDU- MON NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR



AN ACT CONVERTING THE LAS NIEVAS NATIONAL HIGH SCHOOL INTO A NATIONAL SECONDARY AGRICUL- TURAL AND TECHNICAL SCHOOL



AN ACT SEPARATING THE STA. JUSTA NATIONAL HIGH SCHOOL - TAR10 LIM MEMORIAL HIGH SCHOOL IN THE MUNICIPALITY OF TIBIAO, PROVINCE OF ANTIQUE FROM THE STA. JUSTA NATIONAL &

P


HIGH SCHOOL, CONVERTING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE TARIO LIM MEMORIAL NATIONAL HIGH SCHOOL AND APPROPRlATJNG FUNDS THEREFOR

To the Committees on Education, Arts and Culture; and r' (inance


AN ACT SEPARATING THE MEXICO NATIONAL HIGH SCHOOL - DIOSDADO P. MACAPAGAL ANNEX IN BARANGAY STO. DOMINOO, MUNICIPALITY OF MEXICO, PROVINCE OF PAMPANGA FROM THE MEXICO NATIONAL HIGH

AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE DIOSDADO P. MACAPAGAL NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR

To the Committees on Education, Arts and

SCHOOL, CONVERTING IT I N r o

Culture; and Finance


AN ACT SEPARATING THE CAGAYAN NATIONAL HIGH SCHOOL - CATAGGAMAN ANNEX IN BARA- NGAY CATAGGAMAN PARDO, ClTY OF TUGUEGARAO, PROVlNCE OF CAGAYAN FROM THE CAGAYAN NATIONAL HIGH SI-IOOL, CONVERT- ING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE CATAGGAMAN NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR

l o the Committees on Education, Arts and Culture; and Finance

House Bill No. 5813, cntitled

AN ACT CONVERTING THE NEGROS OCCIDENTAL SCIENCE HIGH SCHOOL IN BARANGAY X W , VICTORIAS CITY, PROVINCE OF

NEGROS OCCIDENTAL INTO A NATIONAL SCIENCE HIGH SCHOOL TO BE KNOWN AS THE NEGROS OCCIDENTAL NATIONAL SCIENCE HIGH SCHOOL AND APPROPRIAT- ING FUNDS THEREFOR



AN ACT SEPARATING THE TUAO VOCATIONAL AND TECHNICAL SCHOOL - CULUNG ANNEX IN BARANGAY CULUNG, MUNICI- PALITY OF TUAO, PROVINCE OF CAGAYAN FROM THE TUAO VOCATIONAL AND TECHNICAL SCHOOL, CONVERTING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE CULUNG NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR

To the Committees on Education, Arts and Culture; and r' ' inance


AN ACT GRANTING THE MIDSAYAP

ORATION A FRANCHISE T O CONSTRUCT, INSTALL, ESTAB- LISH, OPERATE AND MAINTAIN LOCAL EXCHANGE NETWORK IN THE MUNICIPALITIES OF PIGCAWAYAN, LIBUNGAN, ALMADA AND MIDSAYAP, ALL IN THE PROVINCE OF NORTH COTABATO

COMMUNICATION SYSTEM CORP-

To the Committee on Public Services


AN ACT PROVIDING FOR THE APPORTIONMENT OF THE LONE LEGISLATIVE DISTRICT OF THE CITY OF CAGAYAN DE O R 0

To the Committees on Local Government; Constitutional Amendments, Revision of Codes and Laws; and Finance

@ .P


and House Bill No. 5884, entitled

ANACTCREATINGABARANGAYTO BE KNOWN AS BARANGAY SAN CARLOS IN THE MuNICPALlTY OF BINANGONAN, PROVINCE OF RIZAL

To the Committees on Local Government; and Finance

FIFTH ADDITIONAL REFERENCE OF BUSINESS

BILLS ON FIRST READING


AN ACT ESTABLISHING THE MT. BALATUKAN RANGE LOCATED IN THE CITY OF GINGOOG AND IN THE MUNICIPALITIES OF CLAVERIA MEDINA, AND BALINGASAG, ALL IN THE PROVKYCE OF MISAMIS ORIENTAL, AS A PROTECTED AREA AND ITS PEFUPHERAL AREAS AS BUFFER ZONE, PROVIDING FOR ITS MANAGEMENT, AND FOR OTHER PURPOSES

Introduced by Senator Pimentel Jr.

To the Committees on Environment and Natural Resources; and r‘ 4 inance


AN ACT ESTABLISHING THE

SCAPE LOCATED IN THE MUNICI- PALITIES OF BALINGOAN AND TALISAYAN, PROVINCE OF MISAMIS ORIENTAL, PROVIDING FOR ITS MANAGEMENT AND FOR OTHER PURPOSES

MIMBILISAN PROTECTED LAND-

Introduced by Senator Pimentel Jr.

To the Committees on Environment and Natural Resources; and r’ < inance

COMMITTEE REPORT

Committee Report No. 162, prepared and submitted jointly by the Committees on Education, Arts and

Culture; and Finance on Senate Bill No. 2521 with Senators Angara, Flavier, Drilon, and the Members of the Committees on Education, Arts and Culture; and Finance as authors thereof, entitled

AN ACT DECLARING THE SHEIKH KARIMUL MAKHDUM MOSQUE, CONSIDERED AS THE FIRST AND OLDEST MUSLIM HOUSE OF PRAYER OR MOSQUE IN THE PHILIPPINES, AT TUBIG, WDANGAN, SIMUNUL, PROVINCE OF TAWI-TAWI, AS A NATIONAL SHRINE, AND FOR OTHER PURPOSES,

recommending its approval in substitution of Senate Bill No. 1059.

Sponsors: Senators Flavier and Angara


MANIFESTATION OF SENATOR DRJLON

Senator Drilon informed the Body that Senator Ejercito Estrada (J) was satisfied with the explanation given by the representatives of the National Labor Relations Commission for their failure to attend the debates on the budget of the NLRC, as well as with their replies to his inquiries on the budget.

SUBMISSION OF THE BUDGET OF THE NATIONAL LABOR RELATIONS COMMISSION

Upon motion of Senator Drilon, there being no objection, the budget of the National Labor Relations Commission (NLRC) was deemed submitted for the Body’s consideration.


Upon motion of Senator Drilon, there being no objection, the Body suspended consideration of the bill.


Upon motion of Senator Drilon, there being no objection, the Chair declared the session suspended until ten 0’ clock in the morning of the following day.

It was 6:36 p.m.

788 FRIDAY, NOVEMBER 24.2006


At 10:34 a.m., Friday, November 24, the session was resumed with Senate President Villar presiding.

SIXTH ADDITIONAL REFERENCE OF BUSINESS


COMMITTEE REPORTS

Committee Report No. 163, submitted by the Committee on Local Government, on House Bill No. 1676, introduced by Representative Soon- Ruiz, entitled

AN ACT DECLARING APRIL 27 OF EACH YEAR AS A SPECIAL NON- WORKING HOLIDAY IN THE ENTIRE PROVINCE OF CEBU AND ALL ITS MUNICIPALITIES AND COMPONENT CITIES, INCLUD- ING THE CITY OF CEBU TO BE KNOWN AS KADAUGAN SA MAKTAN DAY,

recommending its approval without amendment.

Sponsor: Senator Lim


Committee Report No. 164, submitted by the Committee on Local Government, on House Bill No. 2826, introduced by Representatives De Venecia and Susano, entitled

AN ACT DECLARING JUNE 20 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN THE CITY OF DAGUPAN.




Committee Report No. 165, submitted by the Committee on Local Government, on House

Bill No. 3362, introduced by Representative Villafuerte, entitled

AN ACT AMENDING REPUBLIC ACT NO. 903 I , DECLARING MAY 27 OF EVERY YEAR A SPECIAL NON- WORKING PUBLIC HOLIDAY IN THE PROVINCE OF CAMARINES SUR AND IN THE CITIES OF NAGA AND IRIGA IN COMMEMORATION OF ITS ANNUAL FOUNDATION ANNIVERSARY,




Committee Report No. 166, submitted by the Committee on Local Government, on House Bill No. 4561, introduced by Representative Escudero, entitled

AN ACT DECLARING MAY 6 OF EVERY YEAR A SPECIAL WORKING HOLIDAY IN THE MUNICIPALITY OF PILAR, PROVINCE OF SORSOGON TO COMMEMORATE THE DEATH ANNIVERSARY OF MAYOR MANUEL T. SIA,




Committee Report No. 167, submitted by the Committee on Local Government, on House Bill No. 4564, introduced by Representative Zamora (M.), et nl., entitled

AN ACT DECLARING MARCH 8 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN THE ENTIRE PROVINCE OF COMPOSTELA VALLEY TO COMMEMORATE ITS FOUNDING ANNIVERSARY,

reconimendiny its approval without amendment.


To the Calendar for Ordinary Business &

FRIDAY, NOVEMBER 24.2006 789

Committee Report No. 168, submitted by the Committee on Local Government, on House Bill No. 4565, introduced by Representative Apostol, entitled

AN ACT DECLARING AUGUST 20 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN THE MUNI- CIPALITY OF DULAG, PROVINCE OF LEYTE TO BE KNOWN AS MUNICIPAL FOUNDATION DAY,




Committee Report No. 169, submitted by the Committee on Local Government, on House Bill No. 4566, introduced by Representative Aquino (B), entitled

AN ACT DECLARING APRIL 19 OF EACH YEAR A SPECIAL NON- WORKING HOLIDAY IN THE CITY OF TARLAC TO BE KNOWN AS TARLAC CITY DAY,




Committee Report No. 170, submitted by the Committee on Local Government, on House Bill No. 4571, introduced by Representative Agarao, entitled

AN ACT DECLARING APRIL 3 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN THE MUNICIPALITY OF LUISIANA, PROVINCE OF LAGUNA TO CELEBRATE THE ARAW NG LUBUSANG KALAYAAN BILANG BAYAN NG LUISIANA, LAGUNA AND THE PANDANAN FESTIVAL,


Sponsor: Senator Liin


Committee Report No. 171, submitted by the Committee on Local Government, on House Bill No. 4573, introduced by Representative Abayon, entitled

AN ACT DECLARING JUNE 19 OF EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE PROVINCE OF NORTHERN SAMAR TO COMME- MORATE ITS FOUNDATION DAY,




Committee Report No. 172, submitted by the Committee on Local Government, on House Bill No. 4575, introduced by Representative Reyes (V), entitled

AN ACT DECLARING JULY 23 OF EACH YEAR A SPECIAL NON- WORKING HOLIDAY IN THE CITY OF TANAUAN, PROVINCE OF BATANGAS TO BE KNOWN AS APOLINARIO MABINI DAY,




Committee Report No. 173, submitted by the Committee on Local Government, on House Bill No. 4578, introduced by Representative Lacson, entitled

AN ACT DECLARING MARCH 21 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN VICTORIAS CITY, PROVINCE OF NEGROS OCCIDENTAL TO COMMEMORATE ITS CONVERSION INTO A COMPONENT CITY,



To the Calendar for Ordinary Business ,$

790 FRIDAY, NOVEMBER 24,2006

Committee Report No. 174, submitted by the Committee on Local Government, on House Bill No. 4579, introduced by Representative Yapha, entitled

AN ACT DECLARING JANUARY 6 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN THE CITY OF TOLEDO, PROVINCE OF CEBU TO COMMEMORATE ITS CHARTER DAY ANNIVERSARY,




Committee Report No. 175, submitted by the Committee on Local Government, on House Bill No. 4581, introduced by Representative Alcala, entitled

AN ACT DECLARING AUGUST 20 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN LUCENA CITY T O CELEBRATE ITS FOUNDATION DAY,




Committee Report No. 176, submitted by the Committee on Local Government, on House Bill No. 471 2, introduced by Representative Biron, entitled

AN ACT DECLARING MARCH 14 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN THE CITY OF PASSI TO BE KNOWN AS THE PASSI CITY FOUNDATION DAY,




Committee Report No. 177, prepared and submitted jointly by the Committees on Agriculture and

Food; and Environment and Natural Resources, on Senate Bill No. 2522 with Senators Manny Villar, Mar Roxas and Magsaysay Jr. as authors thereof, entitled

AN ACT DEFINING HANDLINE FISHING, PROVIDING EFFECTIVE REGULATIONS THEREFOR AND FOR OTHER PURPOSES,

recommending its approval in substitution of Senate Bill Nos. 799, 1743 and 1764, taking into consideration House Bill No. 4067.

Sponsor: Senator Magsaysay Jr.


SPECIAL ORDERS

Upon motion of Senator Cayetano, there being no objection, the Body approved the transfer of Committee Report Nos. 11 1 to 127 and Committee Report Nos. 163 to 176 on the 31 local public holiday bills from the Calendar for Ordinary to the Calendar Cor Special Orders.

HOLIDAY BILLS

With the unanimous consent of the Body, upon motion of Senator Cayetano, the following bills were considered on Second Reading:

I. House Bill No. 188 (Committee Report No. 11 I), entitled

AN ACT DECLARING DECEMBER 13 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN GENERAL TRIAS IN THE PROVINCE OF CAVITE;

2. House Bill No. 213 (Committee Report No. 112), entitled

AN ACT DECLARING THE FOURTH DAY OF FEBRUARY OF EVERY YEAR AS A SPECIAL WORKING HOLIDAY IN THE CITY OF MUNTINLUPA TO BE KNOWN AS “ARAW NG KALAYAAN NG MUNTINLUPA”:

3. House Bill No. 748 (Committee Report No. 1 1 3), entitled

AN ACT DECLARING THE TWELFTH DAY OF OCTOBER OF EVERY YEAR AS A NONWORKING SPECIAL PUBLIC

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FRIDAY, NOVEMBER 24,2006

HOLIDAY IN THE MUNICIPALITY OF GETAFE, PROVINCE OF BOHOL TO BE KNOWN AS “THE GETAFE FOUNDATION DAY” AND FOR OTHER PURPOSES;


AN ACT DECLARING THE TENTH DAY OF SEPTEMBER OF EVERY YEAR AS A NONWORKING HOLIDAY IN THE CITY OF SAN JOSE DEL MONTE, BULACAN TO BE KNOWN AS THE CITY OF SAN JOSE DEL MONTE FOUNDATION DAY;


AN ACT DECLARING JANUARY 22 OF EACH YEAR AS A SPECIAL NON- WORKING HOLIDAY IN THE CITY OF VIGAN, ILOCOS S U R TO COMMEMO- RATE ITS ANNIVERSARY AS A CITY,


AN ACT DECLARING SEPTEMBER 11 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN THE PROVINCE OF ILOCOS NORTE AND IN LAOAG CITY TO BE KNOWN AS THE “PRESIDENT FERDINAND EDRALIN MARCOS DAY”;


AN ACT DECLARING SEPTEMBER 29 OF EVERY YEAR AS A SPECIAL NON- WORKING HOLIDAY IN THE MUNICI- PALITY OF SAN RAFAEL, PROVINCE OF BULACAN TO BE KNOWN AS “ARAW NG SAN RAFAEL”;


AN ACT DECLAPJNG FEBRUARY 4 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN THE CITY OF SAN FERNANDO, PROVINCE OF PAMPANGA TO BE KNOWN AS THE “CITYHOOD DAY”;


AN ACT DECLARING SEPTEMBER 3 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN THE CITY OF

791

IRIGA, PROVINCE OF CAMARINES SUR TO COMMEMORATE THE ‘?RIGA CITY FOUNDATION ANNIVERSARY,


AN ACT DECLARING FEBRUARY 5 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN THE

OF LAGUNA TO BE KNOWN AS ‘‘BIi?JAN LIBERATION DAY”,

11. House Bill No. 4570 (Committee Report

M U N I C P ~ OF B ~ A N , PROVINCE

No. 121), entitled

AN ACT DECLARING SEPTEMBER 8 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY INDIGOS CITY, PROVINCE OF DAVAO DEL SUR TO COMMEMORATE ITS INAUGURA- TION AS A CHARTER CITY;


AN ACT DECLARING SEPTEMBER 18 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN THE CITY OF TACURONG, PROVINCE OF SULTAN KUDARAT TO COMMEMORATE ITS CHARTER DAY ANNIVERSARK


AN ACT DECLARING FEBRUARY 14 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN THE CITY OF VALENZUELA TO BE KNOWN AS “ARAW NG LUNGSOD NG VALENZUEW;


AN ACT DECLARING FEBRUARY 28 OF EVERY YEAR A SPECIAL NON- WORKING HOLIDAY IN ESCALANTE CITY, NEGROS OCCIDENTAL TO COMMEMORATE ITS CHARTER DAY ANNIVERSARY;


AN ACT DECLARING DECEMBER 1 OF EVERY YEAR A SPECIAL NONWORK- ING HOLIDAY IN THE MUNICIPALITY OF ARAYAT, PROVINCE OF PMANGA TO BE KNOWN AS ‘%EN. JOSE M. ALEJANDRINO DAY’; &‘

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792


AN ACT DECLARING SEPTEMBER 20 OF EVERY YEAR A SPECIAL NONVJORK- ING HOLIDAY IN ILIGAN CITY TO CELEBRATE THE TOURISM WEEK OF THECITYANDTOHONORTHEFEAST OF SAINT MICHAEL ARCHANGEL, PATRON SAINT OF THE CITY,


AN ACT DECLARING FEBRUARY 1 OF EVERY YEAR A SPECIAL NONVJORK- ING PUBLIC HOLIDAY IN THE PROVINCE OF CAMARINES NORTE, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9090, ENTITLED “AN ACT DECLARING FEBRUARY FIRST OF EVERY YEAR AS ‘JOSE MARIA C. PANGANIBAN DAY’ AND A SPECIAL WORKING PUBLIC HOLIDAY IN THE PROVINCE OF CAMARINES NORTE”;


AN ACT DECLARING APRIL 21 OF EACH YEAR AS A SPECIAL NONWORKING HOLIDAY IN THE ENTIRE PROVINCE OF CEBU AND ALL ITS MUNICIPAL- ITIES AND COMPONENT CITIES, INCLUDING THE CITY OF CEBU TO BE KNOWN AS “KADAUGAN SA MAKTAN DAY’;

19. House Bill No. 2826 (Committee Report No. 164). entitled

AN ACT DECLARING JUNE 20 OF EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE CITY OF DAGUPAN,


AN ACT AMENDING REPUBLIC ACT NO. 9031, DECLARING MAY 27 OF EVERY YEAR A SPECIAL NONWORK- ING PUBLIC HOLIDAY IN THE PROVINCE OF CAMARINES SUR AND IN THE CITIES OF NAGA AND IRIGA I N C O ~ O R A T I O N O F ~ A N N U A L FOUNDATION ANNIVERSARY,


AN ACT DECLARING MAY 6 OF EVERY YEAR A SPECIAL WORKING HOLIDAY


IN THE MUNICIPALITY OF PILAR, PROVINCE OF SORSOGON TO COM- MEMORATE THE DEATH ANNIVER- SARY OF MAYOR MANUEL T. SIA;


AN ACT DECLARING MARCH 8 OF EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE ENTIRE PROVINCE OF COMPOSTELA VALLEY TO COMMEMORATE ITS FOUNDING ANNIVERSARY;


AN ACT DECLARING AUGUST 20 OF EVERY YEAR A SPECIAL NONWORK- EVG HOLIDAY W THE MUNICIPALITY OF DULAG, PROVINCE OF LEYTE TO BE KNOWN AS “MUNICIPAL FOUNDATION DAY”:


AN ACT DECLARING APRIL 19 OF EACH YEAR A SPECIAL NONWORKWG HOLIDAY IN THE CITY OF TARLAC TO BE KNOWN AS ‘TARLAC CITY DAY,


AN ACT DECLARING APRIL 3 OF EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE MUNICIPALITY OF LUISIANA, PROVINCE OF LAGUNA TO CELEBRATE THE “ARAW NG LUBUSANG KALAYAAN BILANG BAYAN NG LUISIANA, LAGUNA” AND THE “PANDANAN FESTIVAL”;


AN ACT DECLARING JUNE 19 OF EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE PROVINCE OF NORTHERN S A M A R TO COMMEMO- RATE ITS FOUNDATION DAY’;


AN ACT DECLARING JULY 23 OF EACH YEAR A SPECIAL NONWORKING HOLIDAY IN THE ClTY OF TANAUAN, PROVINCE OF BATANGAS TO BE KNOWN AS “APOLINARIO MABINI DAY”; Ad

FRIDAY, NOVEMBER 24,2006 793


AN ACT DECLARING MARCH 21 OF EVERY YEARA SPECIALNONWORK- ING HOLIDAY IN VICTORIAS CITY, PROVINCE OF NEGROS OCCIDENT& TO COMMEMORATE ITS CONVER- SION INTO A COMPONENT CITY,


AN ACT DECLARING JANUARY 6 OF EVERY YEAR A SPECIAL NONWORK- ING HOLIDAY IN THE CITY OF TOLEDO, PROVINCE OF CEBU TO COWMORATE ITS CHARTER DAY ANNlVEWARY,


AN ACT DECLARING AUGUST 20 OF EVERY YEAR A SPECIAL NONWORK- ING HOLIDAY IN LUCENA CITY TO CELEBRATE ITS FOUNDATION DAY; and


AN ACT DECLARING MARCH 14 OF EVERY YEAR A SPECIAL NONWORK- ING HOLIDAY IN THE CITY OF PASSI TO BE KNOWN AS THE “PASSI CITY FOUNDATION DAY.”

Pursuant to Section 67, Rule XXIII of the Rules of the Senate, with the permission of the Body, upon motion of Senator Cayetano, only the titles of the bills were read without prejudice to the insertion of their full texts into the Record of the Senate.

SPONSORSHIP SPEECH OF SENATOR LIM

In sponsoring the local holiday bills, Senator Lim delivered the following speech:

I thank this Chamber for its kind indulgence in allowing me to present and sponsor 31 House bills seeking to declare special holidays in certain municipalities, cities and provinces in the country. I assure my colleagues that this omnibus sponsorship speech will only be for the period of sponsorship and that it is understood that these bills will be called and considered individually during the periods of interpellations and amendments and approval on Second and Third Readings. We understand that the practice

of delivering omnibus sponsorship speech on bills of similar nature has been allowed in the past in this Chamber just to provide the Members an overview of the nature of the bills and, of course, to facilitate the consideration of bills of the same nature.

A deep sense of history and culture of every nation has been a strong unifying force among citizens. The people’s ability to identify themselves with one another and their fellow citizens of the past pertaining to their common origin, traditions and beliefs is a welding link between and among individuals who are trying to build a strong foundation for growth and development.

Ang kasabihan nga ng mga matatanda: “Ang hindi marunong lumingon sa pinang- galingan ay hindi makararating sa paro- roonan. ” Another familiar quote is also relevant on this issue before us: “United we stand, divided we fall.”

Could it be that many of our ills are a result of lack of cohesiveness among our people? Could it be that our lack of unity is because we have neglected our sense of history? These may sound big questions and require big answers. But what could we do now to be able to foster unity among us Filipinos? Issues against government officials are definitely not unifying. But we can rally behind everything and anything that could make us proud as Filipinos and that would allow us to remember our heroes, martyrs and patriots. We could all pause and pay tribute to our many unsung heroes who were part of events that made a nation or a community.

This is the very essence of the 3 1 bills before us, if the Senate would approve them. Variably, these bills allow us to go back the memory lane and build upon the heroism of renowned and not- so-known Filipinos who had exemplified heroism, courage and patriotism. They also provide the opportunity for our people today to remember historic events that link the past to the future.

A number of our colleagues have been wondering whether or not the intent of the bills before us could not be accomplished by the local government councils. It is worth mentioning here that there is yet to be law to declare local holidays in their respective localities. What the Local Government Code of 1991 delegates to the local sanggunians are, among others, the power to change the name of LGUs, roads, schools, health centers, and other public buildings owned by LGUS.

Moreover, Section 27 of the Revised Administrative Code of 1987 (Executive Order /v/

794

No. 292) authorizes the President to proclaim any local special day for a definite group or place. But such authority is limited in effectivity, such that the local chief executives have to lobby the President every year. As such, LGUs have no other recourse but to come to Congress for the law that would allow them to commemorate special days on a yearly basis.

To address this matter, we have recently filed Senate Bill No. 2491 that seeks to empower local sunggunians to declare special holidays in their localities. The bill proposed certain guidelines that would prevent whimsical, capricious and limitless declaration of nonworking local holidays contrary to the interest of productivity and good business practice.

With the hope that it would no longer be necessary for the local chief executives to be coming to the Fourteenth Congress for the declaration of special days in their localities, we have already directed the committee secretariat to immediately convene a technical working group, together with the representatives fsom the National Historical Inctitute, the Department of Labor and Employment and representatives from the business and labor sectors, to refine the bill and present a draft for the approval of this Chamber.

Let me now describe the seventeen local holiday bills before us today:

I . House Bill No. 188 - This bill seeks to declare December 13 of every year as a special nonworking holiday in General Trias, Cavite as “General Trias Foundation Day”;

2. House Bill No. 213 - Declaring every February 4 as a special working holiday in the City of Muntinlupa as Aruw ng Kalayuan ng Munlinlupu, commemorating the liberation of the City from the Japanese forces in 1945;

3. House Bill No. 748 - Declaring every October 12 as nonworking holiday to be known as “Getafe Foundation Day” in the Municipality of Getafe in the Province of Bohol. Getafe was created as a town on the same day in 1875 by virtue of a Royal Decree;

4. House Bill No. 2402 -Declaring September 10 of every year as a nonworking “San Jose del Monte Foundation Day” in the City of San Jose del Monte in Bulacan;

5. House Bill No. 4562 - Declaring September 11 of every year as a special nonworking holiday in the Province of Ilocos Norte and in Laoag City as “President Ferdinand Edralin Marcos Day.” Whatever our stand on the issue of the former President’s role in our

FRIDAY, NOVEMBER 24.2006

history, President Marcos has undoubtedly been an icon and inspiration among our kababuyans in the North;

6. House Bill No. 4563 - Declaring September 29 of every year as a special nonworking holiday in the Municipality of San Rafael, Province of Bulacan, to commemorate the town’s foundation anniversaty;

7. House Bill No. 4567 - Declaring February 4 of every year as a special nonworking day in the City of San Fernando, Pampanga to commemorate the City’s Charter Day;

8. House Bill No. 4568 - Declaring September 3 of every year as a special nonworking holiday in the City of Iriga, Camarines Sur to commemorate the city’s foundation anniversary;

9. House Bill No. 4569 -Declaring February 5 of every year as nonworking “BiRan Liberation Day” in Bixian, Laguna. This is to remember the town’s liberation from the Japanese forces by the 47” Division, 48Ih Regiment of the Hunters ROTC Guerillas under the command of Col. Emmanuel de Ocampo;

10. House Bill No. 4570- Declaring September 8 of every year as a special nonworking holiday in the City of Digos to celebrate its foundation day;

11. House Bill No. 4572 - Declaring September 18 of every year as a special nonworking holiday in the City of Tacurong, Sultan Kudarat, for its charter day;

12. House Bill No. 4574 - Declaring February 14 of every year as a special nonworking holiday in the City of Valenzuela to commemorate is charter anniversary;

13. House Bill No. 4576 - Declaring February 28 of every year as a special nonworking day in the City of Escalante to commemorate its charter anniversary;

14. House Bill No. 4577 - Declaring December 1 of every year as a special nonworking day in Arayat, Pampanga, to be known as Gen. Jose M. Alejandrho day. Gen. Alejandrho was a great revolutionary and illustrious son of Arayat who fought valiantly against the Spaniards and was among the last to surrender to the colonizers.

15. House Bill No. 4580 - Declaring September 20 of every year as a special nonworking holiday in Iligan City to pay homage to St. Michael Archangel, patron saint of the city.

16. House Bill No. 4711 -Declaring February 1 of every year a special nonworking day in ly

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FRIDAY, NOVEMBER 24,2006 79 5

17.

18.

19.

20.

21.

22.

23.

24.

25.

26,

27,

the province of Camarines Norte, to be known as Jose Maria C. Panganiban day. Jose Panganiban was an illustrious member of the propaganda movement and exponent of Philippine independence. House Bill No. 1676 - Declaring April 27 of each year as a special nonworking holiday in the entire province of Cebu and all its municipalities and component cities, including the City of Cebu, to be known as Kadaugan sa Maktan Day. House Bill No. 2826 - Declaring June 20 of every year a special nonworking holiday in the City of Dagupan. House Bill No. 3362 - Declaring May 27 of every year a special nonworking public holiday in the province of Camarines Sur and in the cities of Naga and Iriga in commemoration of its annual foundation anniversary. House Bill No. 4561 - Declaring May 6 of every year a Special Working Holiday in the municipality of Pilar, province of Sorsogon, to commemorate the death anniversary of Mayor Manuel T. Sia. House Bill No. 4564 - Declaring March 8 of every year a special nonworking holiday in the'entire Province o f Compostela Valley to commemorate its founding anniversary. House Bill No. 4565 - Declaring August 20 of every year a special nonworking holiday in the municipality of Dulag, province of Leyte, to be known as Municipal Foundation Day. House Bill No. 4566 - Declaring April 9 of each year a special nonworking holiday in the city of Tarlac, to be known as the Tarlac City Day. House Bill No. 4571 - Declaring April 3 of every year a special nonworking holiday in the municipality of Luisiana, province of Laguna, to celebrate the Araw ng Lubusang Kalayaan Bilang Bayan ng Luisiana. Laguna and the Pandanan Festival. House Bill No. 4573 - Declaring June 19 of every year a special nonworking holiday in the province of Northern Samar to commemorate its foundation day. House Bill No. 4575 - Declaring July 23 of each year a special nonworking holiday in the city of Tananan, province of Batangas, to be known as Apolinario Mabini Day. House Bill No. 4578 - Declaring March 21 of every year a special nonworking holiday

in Victoria City, province of News Occidental, to commemorate its conversion into a component city.

28. House Bill No. 4579 - Declaring January 6 of every year a special nonworking holiday in theccity of Toledo, province of Cebu, to commemorate its Charter Day Anniversaty.

29. House Bill No. 4581 - Declaring August 20 of evety year a special nonworking holiday in Lucena City to celebrate its foundation day.

30. House BiN No. 4712 - Declaring March 14 of every year as a special nonworking holiday in the City of Passi, to be known as the Passi City foundation day.

The recommendations contained in each of the 31 reports are consistent with the position taken by the National Historical Institute and by the Department of Labor and Employment. Approaching the matter in this way ensures the initiatives of the local government units, and will also be complementary to the overarching economic and productive interest of the nation as a whole.

In the light of the political and social strifes that grip the nation today, never has there been a greater need to focus on the common historical, cultural and social ties that bind us as a people. We are confident that the bills before us today, parochial as they may seem to us, are the chain that would strongly link and unite our nation. I appeal for the approval of these measures.


Asked by Senator Enrile on the number of national holidays being observed in the country, aside fiom the holidays which had been approved by Congress for certain provinces, cities and municipalities, as this has some bearing on national growth, Senator Lim said that he would provide Senator Enrile with the necessary information at the soonest possible time.

Senator Emile said that he would be requiring the inclusion of these figures in the bills. He pointed out that a nonworking holiday entails economic loss not only to the particular locality but to the entire nation as government would not be earning income by way of taxes during this day. Senator Lim said that the DOLE representative has told him that the rationale of granting only one special nonworking holiday is precisely to prevent the economy of a particular locality to be affected. He added that during the hearings, the Committee gave much weight on the &'

796 FRIDAY. NOVEMBER 24.2006

celebration of historical events and heroic deeds of certain people.

Senator Enrile said that he was only thinking of the welfare of the entire nation, and he believed that these heroes would want the country to move forward and be prosperous. He said that he would like to have all the pertinent data, including the figures on the corres-ponding losses of each city, town, municipality and province during these nonworking holidays, otherwise, he would move that these bills be returned to the Committee. He stressed that it is the responsibility of legislators to enact laws to ensure the nation’s welfare.

At this point, Senator Lirn informed the Body that the following holidays are being observed in the country: New Year’s Day, EDSA-People Power Anniversary, Maundy Thursday, Good Friday, Black Saturday, Labor Day, Independence Day, Benign0 Aquino Day, All Saints’ Day, Christmas Day; and December 3 1.

Senator Lirn said that only nine are nonworking holidays.

Senator Enrile pointed out that the proposed holidays would entail an additional 1 1% loss for each of the municipalities, cities and provinces concerned, He inquired into the economic output and total revenue loss of, and the number of workers affected in each locality.

Senator Lim said that he shall require the government agencies concerned to provide the necessary data.

Asked on the number of bills on holidays being considered in the Senate, Senator Lirn replied that it is 3 1, adding that there are no other bills of the same nature pending in the Committee. He said that he has proposed a bill authorizing the Sungguniang Buyun to study and declare holidays in a particular locality.

On whether the schools in these localities would also be closed during the special holidays, Senator Lim replied in the affirmative.

Asked on the effects of a one-day nonworking holiday to students, especially those in the elementary level, Senator Lim believed that it would be minimal. He said that the Committee failed to invite DepEd representatives during the hearings but the matter

was discussed with the respective mayors and congressmen of the localities.

Asked if hospitals would cease operations during these holidays, Senator Lirn replied in the negative, saying that hospitals should be open 24 hours a day. He said that since hospital staff are required to work on a holiday, they shall be paid additional overtime pay.

At this point, Senator Enrile stated that he would suspend his interpellation until the Committee shall have furnished him with the necessary data.


Senator Angara pointed out that a comparative study of working hours in Asia made by the International Labor Organization (ILO) has revealed that Filipinos who belong to the private sector have the longest working hours. He then requested that he be provided with the information on the exact number of working hours in the Philippines which is important in determining the impact of these local holidays on the private sector, and especially on the public sector whose workers follow a four-day workweek. He said that he has no opposition to the celebration of local events but since there is a provision in the Local Government Code which covers bills of local application such as the declaration of holidays and the creation and renaming of schools and streets, there is no need for these bills to be filed in the Senate. Senator Lim stated that Section 13 of the Local Government Code empowers the provincial, city and municipal governments to change the name of local government units, roads, streets and public buildings but not with respect to the declaration of special holidays, He added that Section 27 of the Revised Administrative Code of 1987 authorizes the President to proclaim any local special day for a particular date, group or place but such authority is limited in effectivity and so the declaration has to be made every year. He pointed out that the reason why there is widespread complaint among the different localities is that the authorities concerned course their request to Malacanang to declare a specific date to be a “special nonworking holiday” but since it takes time before Malacdiang can consider the request because of too much workload, the approval is issued when the date has already passed.

Senator Angara said that it would be a better reason that there is no substitute to a national#

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declaration especially through law. He expressed the need for a long-term solution to the problem, suggesting that a particular section of the Local Government Code be amended to include these concerns, which would, in effect, also lessen the legislative load of the Senate. Senator Lim stated that this is the reason why the Committee has proposed a bill authorizing the provincial board to declare special nonworking holidays.

On the suggestion that the bill also cover the creation and renaming of national high schools and streets as well, Senator Lim said that this matter is included in the bill.

On another matter, Senator Lim stated that workers who follow the five-day workweek render a total of 40 working hours; in the same manner, employees who have a four-day work week, also work 40 hours a week.

Asked whether he would be proposing an amendment to the Local Government Code to take care of all local bills of this nature that keep flooding the Senate’s legislative agenda, Senator Lim replied in the affirmative, stating that the declaration of nonworking holidays should be delegated to the local governments.

INTERPELLATION OF SENATOR BIAZON

At the outset, Senator Biazon stated that the purpose of the Local Government Code is to ensure that the LGUs would have some degree of autonomy in the shaping of the political, economic, social and cultural aspects of the locality, thereby reducing the workload of Congress except that congressional oversight should continue over certain areas such as taxation, resource development, and even the conversion of municipal and provincial roads and streets into national roads because of its budgetary implications. He agreed that there is a need to revisit the legislative functions and powers that should be assigned to the LGUs, taking into Consideration the autonomy granted to them by the Constitution.

Senator Lim said that he would be amenable to accepting amendments at the proper time.

Senator Biazon requested that he be made coauthor of the bills.

SUSPENSION OF CONSIDERATION OF THE 31 HOLIDAY BILLS

Upon motion of Senator Cayetano, there being no objection, the Body suspended consideration of the 31 holiday bills.


Upon motion of Senator Cayetano, the session was suspended.

It was 11:43 a.m



SPECIAL ORDER

Upon motion of Senator Cayetano, there being no objection, the Body approved the transfer of Committee Report No. 162 on Senate Bill No. 2521 from the Calendar for Ordinary Business to the Calendar for Special Orders.


Upon motion of Senator Cayetano, there being no objection, the Body considered, on Second Reading, Senate Bill No. 2521 (Committee Report No. 162), entitled

AN ACT DECLARING THE SHEIKH KARIMUL MAKHDUM MOSQUE, CONSIDERED AS THE FIRST AND OLDEST MUSLIM HOUSE OF PRAYER OR MOSQUE IN THE PHILIPPINES, AT TUBIG, INDANGAN, SIMUNUL, PROVINCE

SHRINE, AND FOR OTHER PURPOSES.

OF TAWI-TAW, AS A NATIONAL

Pursuant to Section 67, Rule XXIII of the Rules of the Senate, with the permission of the Body, upon motion of Senator Cayetano, only the title of the bill was read without prejudice to the insertion of its full text into the Record of the Senate.

Thereupon, the Chair recognized Senator Angara for the sponsorship. ~y

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SPONSORSHIP REMARKS OF SENATOR ANGARA

Senator Angara stated that Senate Bill No. 2521 is a very simple bill of far-reaching significance because it seeks to acknowledge the first Muslim Mosque in the country that was built two centuries before the Spanish colonization.

On behalf of the Committee and Senator Flavier, Senator Angara recommended that the Senate declare as a national shrine the Sheikh Karimul Makhdum Mosque at Tubig, Indangan, Simunul, Tawi-Tawi, the first and oldest Muslim house of prayer or mosque in the Philippines which was founded and built by an Arabian missionary, Karimul Sheik Makhdum, in 1380 A.D. He said that this mosque was ruined and destroyed in the course of time and what remains are the four big pillars.

Senator Angara informed the Body that the grave of the founder of the mosque in Tamdumanak, Sitangkai, Tawi-Tawi is marked by a simple marker. He said that the National Historical Institute would put the appropriate marker on the site and take care of its maintenance. He stated that the bill simply calls on Congress to declare the site as a national shrine, a national heritage and national trust.

TERMINATION OF THE PERIOD OF INTERPELLATIONS

There being no interpellation, upon motion of Senator Cayetano, there being no objection, the Body closed the period of interpellations and proceeded to the period of committee amendments.

TERMINATION OF THE PERIOD OF AMENDMENTS

There being no committee and individual amendment, upon motion of Senator Cayetano, there being no objection, the Body closed the period of amendments.

APPROVAL OF SENATE BILL NO. 2521 ON SECOND READING

Submitted to a vote, there being no objection, Senate Bill No. 2521 was approved on Second Reading.



It was 11:49 a.m.


At 11 :49 am., the session was resumed.


(Continuation)

Upon motion of Senator Cayetano, there being no objection, the Body resumed consideration, on Second Reading, of House Bill No. 5401 (Committee Report No. 159), entitled

AN ACT FURTHER AMENDING THE FRANCHISE OF ANGELES ELECTRIC CORPORATION GRANTED UNDER REPUBLIC ACT NO. 2341, AS AMENDED, TO CONSTRUCT, OPERATE AND MAINTAIN A DISTRIBUTION SYSTEM FOR THE CONVEYANCE OF ELECTRIC POWER TO THE END-USERS IN THE CITY OF ANGELES, PROVINCE OF PAMPANGA, AND RENEWING1 EXTENDING THE TERM OF THE

FIVE (25) YEARS FROM THE DATE OF APPROVAL OF THIS ACT.

FRANCHISE TO ANOTHER TWENTY-

Senator Cayetano stated that parliamentary status was the period of interpellations.

The Chair recognized Senator Arroyo, Sponsor of the measure.


There being no interpellation, upon motion of Senator Cayetano, there being no objection, the Body closed the period of amendments and proceeded to the period of committee amendments.

COMMITTEE AMENDMENTS

As proposed by Senator Arroyo, there being no objection, the Body approved the following committee amenhents:

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FRIDAY, NOVEMBER 24,200G 799

1. On page 6, before Section 9 (Right ofEminent Domain), insert a new section to read as follows:

SEC. -. TMPROVISIONS. - THE GRANTEE, SUCCESSORS ORASSIGNS, SHALL BE SUBJECT TO THE PAYMENT OF ALL TAXES, DUTIES, FEES OR CHARGES AND OTHER IMPOSITIONS APPLICABLE TO PRIVATE ELECTRIC UTILITIES UNDER THE NATIONAL l " A L R E v E N U E C O D E ~ ~ 0 F 1997, AsAMENDED,THELocALGovER"T CODE AND OTHER APPLICABLE LAWS: PROVIDED, THAT NOTHING HEREIN SHALL BE CONSTRUED AS REPEALING ANY SPECIFIC TAX EXEMPTIONS, INCENTIVES, OR PRIVILEGES GRANTED UNDER ANY RELEVANT LAW PROVIDED, F U R W E THAT ALL RIGHTS, PRIVILEGES, BENEFITS AND EXEMPTlONS ACCORDED TO EXISTING AND FUTURE PRIVATE ELECTRIC UTILITIES BY THEIR RESPEC- TIVE FRANCHISES SHALL LIKEWISE BE EXTENDED TO THE GRANTEE.

THE GRANTEE SHALL FILE THE RETURN WITH THE CITY WHERE ITS PRINCIPAL PLACE OF BUSINESS IS LOCATED AND PAY THE TAXES DUE THEREON TO THE COMMISSIONER OF INTERNAL REVENUE OR HIS DULY AUTHORIZED REPRESENTATIVE IN ACCORDANCE WITH THE NIRC AND THE RETURN SHALL BE SUBJECT TO AUDIT BY THE BUREAU OF INTERNAL R E w a n d

Renumber the succeeding sections accordingly. 2.

TERMINATION OF THE PERIOD OF COMMITTEE AMENDMENTS

Upon motion of Senator Cayetano, there being no objection, the Body closed the period of committee amendments.


Upon motion of Senator Cayetano, there being no objection, the Body suspended consideration of the bill.


(Continuation)

Upon motion of Senator Cayetano, there being no objection, the Body resumed consideration, on Second

Reading, of House Bill No. 5512 (Committee Report No. 158), entitled

AN ACT FURTHER AMENDING THE FRANCHISE O F LA UNION ELECTRIC COMPANY, INC. UNDER REPUBLIC ACT NO. 1225, AS AMENDED, TO CONSTRUCT, OPERATE AND MAINTAIN A DISTRIBUTION SYSTEM FOR THE CONVEYANCE OF ELECTRIC POWER TO THE END-USERS IN THE CITY OF SAN FERNANDO AND THE MUNICIPALITIES OF BAUANG AND S A N JUAN, PROVINCE OF LA UNION, AND RENEWING/EXTEND- ING THE TERM OF THE FRAN- CHISE TO ANOTHER TWENTY- FIVE (25) YEARS FROM THE DATE OF APPROVAL OF THIS ACT.

Senator Cayetano stated that parliamentary status was the period of interpellations.

The Chair recognized Senator Arroyo, Sponsor of the measure.




As proposed by Senator Arroyo, there being no objection, the Body approved the following committee amendments:

1. On page 7, before Section 9 (Right ofEminent Domain), insert a new section to read as follows:

SEC. - . TMPROVISIONS. -THE GRANTEE, ITS SUCCESSORS ORASSIGNS, SHALL BE SUBJECT TO THE PAYMENT OF ALL TAXES, DUTIES, FEES OR CHARGES AND OTHER IMPOSITIONS APPLICABLE TO PRIVATE ELECTRIC UTILITIES UNDER THE NATIONAL INTERNAL REVENUE CODE W C ) OF 1997,

CODE AND OTHER APPLICABLE LAWS: AsAMENDED,mLQcALGow"T dy


PROVIDED, THAT NOTHING HEREIN SHALL BE CONSTRUED AS REPEALING ANY SPECIFIC TAX EXEMPTIONS, INCENTIVES, OR PRIVILEGES GRANTED UNDER ANY RELEVANT LAW: PROVlDED FURZWR, THATALLRIGHTS,PRNILEGES, BENEFlTS AND EXEMPTIONS ACCORDED TO EXISTING AND FUTURE PRIVATE ELECTRIC UTILITIES BY THEIR RESPEC- TIVE FRANCHISES SHALL LIKEWISE BE EXTENDED TO THE GRANTEE.

THE GRANTEE SHALL FILE THE RETURN WITH THE CITY WHERE ITS PRINCIPAL PLACE OF BUSINESS IS LOCATED AND PAY THE TAXES DUE THEREON TO THE COMMISSIONER OF INTERNAL REVENUE OR HIS DULY AUTHORIZED REPRESENTATIVE IN ACCORDANCE WITH THE NIRC AND THE RETURN SHALL BE SUBJECT TO AUDIT BY THE BUREAU OF INTERNAL REVENUE; and Renumber the succeeding sections accordingly 2.






(Continuation)

Upon motion of Senator Cayetano, there being no objection, the Body resumed consideration, on Second Reading, of House Bill No. 3293 (Committee Report No. 155), entitled

AN ACT GRANTING THE ZAMBOANGA ARTURO EUSTAQUIO COLLEGES FOUNDATION, INC. A FRANCHISE

LISH, OPERATE AND MAINTAIN

CASTING STATIONS IN IPIL, ZAMBOANGA SLBUGAY.

TO CONSTRUCT, INSTALL, ESTAB-

RADIO AND TELEVISION BROAD-

Senator Cayetano stated that the parliamentary status was the period of interpellations.

Thereupon, the Chair recognized Senator Arroyo, Sponsor of the measure.




As proposed by Senator Arroyo, there being no objection, the following amendments were approved by the Body, one after the other:

1. On page 1, line 3, change the name “Zamboanga Eustaquio Colleges Foundation, Inc.” to UNIVERSIDAD DE ZAMBOANG&

2. On the same page, line 6, after the world “radio,” delete the phrase “andor television”;

3. On the same page, lines 7 and 8, after the word “frequencies,” delete the phrase “and or channels“;

4. On the same page, line 8, after the word “radio,” delete the phrase “andor television’’;

5. On page 2, line 2, after the preposition “in,” delete the words “television and”;

6. On the same page, line 17, after the word “radio,” delete “/television”;

7, On page 3, line 5 , delete the phrase “act or scene”;

8. On the Same page and line, between the words ‘‘language’’ and “speech,” change the comma (,) to OR,

9. On page 5, lines 2 and 3, after the word “speech,” delete the comma (,) and the phrase “play, act or scene,”;

IO. On the same page, lines 4 and 5 , after the word “speech,” delete the phrase “, play, act, or scene,”;

11. On the same page, before Sec. IO (Warranty in Favor ofNationa1 and Local Governments), insert a new section to read as follows:

SEC. _. OBLIGATION OF THE G R A m E . -ANY PERSON AGGRIEVED BY ANY REMARK, REPORT, STATEMENT, COMMENTARY OR THE LIKE BY


12.

13.

14

BROADCASTERS USING THE SAME FACILITIES OF THE GRANTEE SHALL HAVETHERIGHTTOREPLYINTHESAME PROGRAM OR ANY OTHER PROGRAM THE AGGRIEVED PARTY MAY CHOOSE.

On page 6 , before Sec. 13 (GeneralBroadcast Policy Law), insert a new section to read as follows:

SIX. __ EQUALITY CLAUSE. - EXCEPT FOR TAXES, ANY ADVANTAGE, FAVOR, PRIVILEGE, EXEMPTION OR IMMUNITY GRANTED UNDER EXISTING FRANCHISES, OR MAY HEREAFTER BE GRANTED, SHALL IPSO FACTO BECOME PART OF THIS FRANCHISE AND SHALL BE ACCORDED IMMEDIATELY AND UNCONDITIONALLY TO THE HEREIN GRANTEE: PROVIDED, HOWEVER, THAT THE FOREGOING SHALL NEITHER APPLY TO NOR AFFECT PROVISIONS OF BROAD- CASTING FRANCHISES CONCERNING TERRlTORY COVERED BY THE F’RANCHEE, THE LFE SPAN OF THE FRANCHISE, OR THE TYPE OF SERVICE AUTHORIZED BY THE IXANCHISE.”

Amend the title of the bill as follows:

AN ACT GRANTING THE UNIVERSIDAD DE ZAMBOANGA A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO BROADCASTING STATIONS IN IPIL, ZAMBOANGA S IBUGAY

Renumber the sections accordingly.






(Continuation)

Upon motion of Senator Cayetano, there being no objection, the Body resumed consideration, on

Second Reading, of House Bill No. 128 on (Committee Report No. 5513), entitled

AN ACT GRANTING THE ITRANS- MISSION INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN THE PHILIPPINES.

Senator Cayetano stated that the parliamentary status was the period of interpellations.

Thereupon, the Chair recognized Senator Arroyo, Sponsor of the measure.


There being no further interpellation, upon motion of Senator Cayetano, there being no objection, the Body closed the period of interpellations and proceeded to the period of committee amendments.


As proposed by Senator Arroyo, there being no objection, the following committee amendments were approved by the Body, one after the other:

1. On page 4, before Section 9 (Self-Regulation by and Undertaking of the Grantee), insert a new section to read as follows:

SEC. - . TAX PROVISIONS. - THE GRANTEE, ITS SUCCESSORS OR ASSIGNS, SHALL BE SUBJECT TO THE PAYMENT OFALLTAXES,DU?EY,FORCHARGES AND OTHER IMPOSITIONS UNDER THE NATIONAL INTERNAL REVENW CODE (NIRC) OF 1997, AS AMENDED, AND OTHER APPLICABLE LAWS: PROVIDED, THAT NOTHING HEREIN SHALL BE CONSTRUED AS REPEALING ANY SPECIFIC TAX EXEMPTIONS, INCENTlVES OR PRIVILEGES GRANTED UNDER ANY RELEVANT LAW PROVIDED, FURTHER, THAT ALLRIGHTS,PRIVILEGES, BENEFITS AND EXEMPTIONS ACCORDED TO EXISTING AND FUTURE BROADCASTING STATION F’RANCHISES SHALL LIKEWISE BE EXTENDED TO TEE GRANTEE.

THE GRANTEE SHALL FILE THE RETURN WITH THE CITY OR MUNICI- PALITY WHERE ITS PRINCIPAL PLACE &


OF BUSINESS IS LOCATED AND PAY THE TAXES DUE THEREON TO THE COM- MISSIONER OF INTERNAL REVENUE OR HIS DULY AUTHORIZED REPRESENT- ATIVE IN ACCORDANCE WITH THE NIRC AND THE RETURN SHALL BE SUBJECT TOAUDITBY THEBUREAUOFINTERNAL REVENUE

On the same page, before Sec. 10 (Warranry in Favor of National and Local Govern- ments), insert a new section to read as follows:

SEC. OBLIGATION OF THE GRANTEE. - ANY PERSON AGGRIEVED BY ANY REMARK, REPORT, STATEMENT, COMMENTARY OR THE LIKE BY BROADCASTERS USING THE SAME

HAVE THE RIGHT TO REPLY IN THE SAME PROGRAM OR ANY OTHER PROGRAM THE AGGRIEVED PARTY MAY CHOOSE.

On page 5 , lines 2 and 5 , delete the phrase “time it has achieved the status of a national broadcasting network. A ‘national broadcasting network‘ is hereby defined as one that operates three or more radio and/or television stations,” and in lieu thereof, insert the following:

COMMENCEMENT OF ITS OPERA- TIONS. THE PUBLIC OFFERING SHALL COMPLY WITH THE RULES AND REGULATIONS OF THE SECURITIES AND EXCHANGE COMMISSION.

On the same page, before Sec. 13 (General Broadcast Policy Law), insert a new section to read as follows:

“SEC. _. EQlJALIlY CLAUSE. - EXCEPT FOR TAXES, ANY ADVANTAGE, FAVOR, PRIVILEGE, EXEMPTION OR IMMUNITY GRANTED UNDER EXISTlNG FRANCHISES, OR MAY HEREAFTER BE GRANTED, SHALL IPSO FACTO BECOME PART OF THIS FRANCHISE AND SHALL BE ACCORDED IMMEDIATELY AND UNCONDITIONALLY TO THE HEREIN GRANTEE PROVIDED, HOWEVER, THAT THE FOREGOING SHALL NEITHER APPLY TO NOR AFFECT PROVISIONS OF BROAD- CASTING FRANCHISES CONCERNING TERRITORY COvERm BY THE FRANCHISE, THE LIFE SPAN OF THE FRANCHISE, OR THE TYPE OF SERVICE AUTHORIZED BY THE FRANCHISE.

2.

FACILITIES OF THE GRANTEE SHALL

3.

4.

5. Renumber the sections accordingly.







It was 12:03 p.m.



SEVENTH ADDITIONAL REFERENCE OF BUSINESS

The Executive Director for Legislation read the following matters and the Chair made the corresponding referrals:

COMMITTEE REPORTS

Committee Report No. 178, prepared and submitted jointly by the Committees on Environment and Natural Resources; Local Government; and Finance, on Senate Bill No. 2523, with Senator Compfiera Pia S. Cayetano and the Members of the Committees as authors thereof, entitled

AN ACT DECLARING THE MOUNTAINS OF BANAHAW AND S A N CRISTOBAL IN THE PROVINCES OF LAGUNA AND QUEZON AS A PROTECTED AREA UNDER THE CATEGORY OF PROTECTED LANDSCAPE AND FOR OTHER PURPOSES,

recommending its approval in substitution of House Bill No. 4977.

Sponsors: Senators Compaiiera Pia S. Cayetano, Lim and Drilon

To the Calendar for Ordinary Business #


Committee Report No. 179, prepared and submitted jointly by the Committees on Environment and Natural Resources; and Finance, on Senate Bill No. 2524, with Senator Compafiera Pia S. Cayetano and the Members of the Committees as authors thereof, entitled

AN ACT DECLARING THE bV. HILONG- HILONG RANGE SITUATED IN THE CITY OF BUTUAN AND IN THE MUNICIPALITIES OF REMEDIOS T. ROMUALDEZ, CABADBARAN AND SANTIAGO IN THE PROVINCE OF AGUSAN DEL NORTE AS A PROTECTED AREA AND FOR OTHER PURPOSES,


Sponsors: Senators Compafiera Pia S . Cayetano and Drilon


Committee Report No. 180, prepared and submitted jointly by the Committees on Environment and Natural Resources; Local Government; and Finance, on Senate Bill No. 2525, with Senator Compafiera Pia S . Cayetano and the Members of the Committees as authors thereof, entitled

AN ACT DECLARING LAKES MANAPAO, KATUGDAY, MAYDANAO AND MAKUAO LOCATED WITHIN THE MUNICIPALITY OF BUHI, CAMARINES SUR AS A PROTECTED AREA TO BE KNOWN AS THE SINARAF’AN SANCTUARY, PROVID- ING FOR ITS MANAGEMENT AND FOR OTHER PURPOSES,


Sponsors: Senators Compafiera Pia S. Cayetano, Lim and Drilon


Committee Report No. 181, prepared and submitted jointly by the Committees on Environment and Natural Resources; Local Government; and

Finance, on Senate Bill No. 2526, with Senator CompaiYera Pia S. Cayetano and the Members of the Committees as authors thereof, entitled

AN ACT DECLARING THE BESSANG PASS NATURAL MONUMENT IN THE MUNICIPALITY OF CERVANTES, LOCOS SUR AS A PROTECTED AREA AND FOR OTHER PURPOSES,


Sponsors: Senators Compafiera Pia S Cayetano, Lim and Drilon


Committee Report No. 182, prepared and submitted jointly by the Committees on Environment and Natural Resources; and Finance on Senate Bill No. 2527, with Senator Compaiiera Pia S . Cayetano and the Members of the Committees as authors thereof, entitled

AN ACT TO ESTABLISH THE MALAMPAYA SOUND SITUATED IN THE MUNICIPALITIES OF TAYTAY AND SAN VICENTE, PROVINCE OF PALAWAN, AS A PROTECTED AREA PURSUANT TO REPUBLIC ACT NO. 7586 (NIPAS ACT OF 1992) PROVIDING FOR ITS MANAGEMENT AND FOR OTHER PURPOSES,


Sponsors: Senators Compafiera Pia S Cayetano and Drilon


Committee Report No. 183, prepared and submitted jointly by the Committees on Environment and Natural Resources; and Finance on Senate Bill No. 2528, with Senator Compaiiera Pia S . Cayetano and the Members of the Committees as authors thereof, entitled

AN ACT TO ESTABLISH THE EL-NDDO- TAYTAY MANAGED RESOURCE &”


PROTECTED AREA LOCATED IN THE MUNICIPALITIES OF EL NIDO AND TAYTAY, PROVINCE OF PALAWAN, AS A PROTECTED AREA AND FOR OTHER PURPOSES PURSUANT TO REPUBLIC ACT 7586 OTHERWISE KNOWN AS T H E

TECTED AREAS SYSTEM (NIPAS) ACT OF 1992,

NATIONAL INTEGRATED PRO-


Sponsors: Senators Compafiera Pia S. Cayetano and Drilon


Committee Report No. 184, prepared and submitted jointly by the Committees on Environment and Natural Resources; Local Government; and Finance on Senate Bill No. 2529, with Senator Compafiera Pia S. Cayetano and the Members of the Committees as authors thereof, entitled

AN ACT DECLARING THE AGUSAN MARSH IN THE PROVINCE OF AGUSAN DEL SUR AS A PROTECTED AREA AND FOR OTHER PURPOSES.

recommending its approval in substitution House Bill No. 4856.

Sponsors: Senators CompaAera Pia S. Cayetano, Lim and Drilon


of

Committee Report No. 185, prepared and submitted jointly by the Committees on Environment and Natural Resources; Justice and Human Rights; and Finance, on Senate Bill No. 2530, with Senator Compaiiera Pia S. Cayetano and the Members of the Committees as authors thereof, entitled

AN ACT DECLARING THE LIDLIDDA- BANAYOYO LANDSCAPE IN THE PROVINCE OF ILOCOS S U R AS A PROTECTED AREA, PROVIDING FOR ITS MANAGEMENT, AND FOR OTHER PURPOSES,


Sponsors: Senators Compaiiera Pia S. Cayetano, Enrile and Drilon


Committee Report No. 186, prepared and submitted by the Committee on Environment and Natural Resources, on Senate Bill No. 2531, with Senator Compaiiera Pia S. Cayetano and the Members of the Committee as authors thereof, entitled

AN ACT DECLARING THE AREA COVERED BY THE NORTHERN NEGROS FOREST RESERVE SITUATED IN THE CITIES OF TALISAY, SILAY, VICTORIAS, CADIZ, SAGAY AND SAN CARLOS AND THE MUNICIPALITIES OF E.B. MAGALONA, MURCIA, TOBOSO, CALATRAVA AND DON SALVADOR BENEDIciTO, PROVINCE OF NEGROS OCCIDENTAL AS A PROTECTED AREA PURSUANT TO R.A. 7586 (NIPAS ACT O F 1992) T O BE KNOWN AS THE NORTHERN NEGROS NATURAL PARK,


Sponsor: Senator Compaiiera Pia S. Cayetano



AN ACT DECLARING THE BUHISAN WATERSHED FOREST RESERVE, THE MANANGA WATERSHED FOREST RESERVE, THE SUDLON NATIONAL PARK, THE CENTRAL CEBU NATIONAL PARK AND THE KOTKOT-LUSARAN WATERSHED FOREST RESERVE IN THE PROVINCE k~ OF CEBU INTO ONE PROTECTED


AREA TO BE KNOWN AS THE CENTRAL CEBU PROTECTED LAND- SCAPE AND FOR OTHER PURPOSES


Sponsor: Senators Compaiiera Pia S. Cayetano and Drilon


Committee Report No. 188, prepared and submitted jointly by the Committees on Environment and Natural Resources; and Finance, on Senate Bill No. 2533, with Senator Compaiiera Pia S. Cayetano and the Members of the Committees as authors thereof, entitled

AN ACT ESTABLISHING THE TUBBATAHA REEF NATIONAL MARINE PARK IN THE PROVINCE OF PALAWAN AS A PROTECTED AREA, PROVIDING FOR ITS MANAGEMENT AND FOR OTHER PURPOSES,


Sponsors: Senators Compaiiera Pia S. Cayetano and Drilon



AN ACT DECLARING TURTLE ISLANDS IN THE MUNICIPALITY OF TURTLE ISLANDS, PROVINCE OF TAWI-TAW1 AS PROTECTED AREA AND THEIR PERIPHERAL AREAS AS BUFFER ZONES, PROVID- ING FOR THEIR MANAGEMENT AND FOR OTHER PURPOSES,





AN ACT DECLARING THE AGOO- DAMORTIS SEASCAPE AND LANDSCAPE IN THE PROVINCE OF LA UNION AS A PROTECTED AREA AND FOR OTHER PURPOSES,


Sponsors: Senators Compaiiera Pia S Cayetano and Drilon



AN ACT ESTABLISHING APO REEF IN SABLAYAN, OCCIDENTAL MINDOR0 AS A PROTECTED AREA AND ITS PERIPHERAL WATERS AS BUFFER ZONES, PROVIDING FOR ITS MANAGEMENT, FUNDS AND FOR OTHER PURPOSES,




Committee Report No. 192, prepared and submitted jointly by the Committees on Environment and Natural Resources; Local Government; and Finance, on Senate Bill No. 2537, with Senator #'

P


Compaiiera Pia S. Cayetano and the Members of the Committees as authors thereof, entitled:

AN ACT ESTABLISHING THE ALIWAGWAG FALLS LOCATED IN THE MUNICIPALITIES OF BOSTON AND CATEEL, PROVINCE OF DAVAO ORIENTAL AND THE MUNICIPALITY OF COMPOSTELA, PROVINCE OF COMPOSTELA VALLEY AS A PROTECTED AREA UNDER THE CATEGORY OF PROTECTED LANDSCAPE AND ITS PERIPHERAL AREAS AS BUFFER ZONE, PROVIDING FOR ITS MANAGEMENT AND FOR OTHER PURPOSES,

recommending its approval in substitution of Senate Bill No. 2046 and House Bill No. 4851

Sponsors: Senators Compaiiera Pia S. Cayetano, Lim and Drilon


Committee Report No. 193, prepared and submitted by the Committee on Environment and Natural Resources, on Senate Bill No. 2538, with Senator Compaiiera Pia S. Cayetano and the Members of the Committee as authors thereof, entitled

AN ACT DECLARING THE TACDOGAN REEF IN THE MIDDLE OF TICAO PASS, LOCATED IN THE WATERS BETWEEN THE PROVINCES OF SORSOGON AND MASBATE, A NATIONAL PARK TO BE KNOWN AS THE TACDOGAN REEF NATIONAL MARINE PARK,


Sponsor: Senator Compaiiera Pia S. Cayetano


Committee Report No. 194, prepared and submitted jointly by the Committees on Environment and Natural Resources; and Finance, on Senate Bill No. 2539, with Senator Compaiiera Pia S.

Cayetano and the Members of the Committees as authors thereof, entitled

AN ACT DECLARING THE BALINSA- SAYAO TWIN LAKES LOCATED IN THE MUNICIPALITIES OF SIBULAN AND SAN JOSE, PROVINCE OF NEGROS ORIENTAL AS A PROTECTED AREA UNDER THE CATEGORY OF NATURAL PARK AND FOR OTHER PURPOSES,


Sponsors: Senators Compafiera Pia S. Cayetano and Drilon


Committee Report No. 195, prepared and submitted jointly by the Committees on Environment and Natural Resources; Justice and Human Rights; and Finance, on Senate Bill No. 2540, with Senator Compafiera Pia S. Cayetano and the Members of the Committees as authors thereof, entitled

AN ACT TO ESTABLISH THE SIARGAO GROUP OF ISLANDS AS A PROTECTED AREA PURSUANT TO REPUBLIC ACT NO. 7586 (NIPAS ACT OF 1992) PROVIDING FOR ITS MANAGEMENT AND FOR OTHER PURPOSES,

recommending its approval in substitution of Senate Bill No. 2045 and House Bill No. 4421.

Sponsors: Senators Compaiiera Pia S. Cayetano, Enrile and Drilon


Committee Report No. 196, prepared and submitted jointly by the Committees on Health and Demo- graphy; and Finance, on Senate Bill No. 2541, with Senators Manny Villar, Flavier, Compafiera Pia S. Cayetano and Drilon as authors thereof, entitled

AN ACT PROVIDING FOR THE CONTROL AND ELIMINATION OF RABIES, PRESCRIBING PENALTIES ,#


FOR VIOLATION THEREOF AND AF’PROPRIATING F ” D S THEREFOR,

recommending its approval in substitution of Senate Bill Nos. 631 and 1899, taking into consideration House Bill No. 4654.

Sponsor: Senator CompaAera Pia S . Cayetano


SPECIAL ORDER

Upon motion of Senator Cayetano, there being no objection, the Body approved the transfer of Committee Report No. 196 on Senate Bill No. 2541 from the Calendar for Ordinary Business to the Calendar for Special Order.


Upon motion of Senator Cayetano, there being no objection, the Body considered, on Second Reading, Senate Bill No. 2541 (Committee Report No. 196), entitled

AN ACT PROVIDING FOR THE CONTROL AND ELIMINATION OF RABIES, PRESCRIBING PENAL- TIES FOR VIOLATION THEREOF AND APPROPRIATING FUNDS THEREFOR.

Pursuant to Section 67, Rule XXIII of the Rules of the Senate, with the permission of the Body, upon motion of Senator Cayetano, only the title of the bill was read without prejudice to the insertion of its full text into the Record of the Senate.

The Chair recognized Senator Cayetano for the sponsorship.

SPONSORSHIP SPEECH OF SENATOR CAYETANO

In sponsoring Senate Bill No. 2541, Senator Cayetano delivered the following speech

Around 300 to 400 Filipinos die needlessly of a most dangerous yet most preventable disease. This disease is rabies, an acute viral sickness transmitted through the bites of rabid dogs and other animals that is almost always

fatal once it completely ravages the central nervous system.

The Philippines ranks sixth in the world today in terms of rabies deaths. And we are further gaining in notoriety after a Japanese man, who had been infected with rabies from a dog bite in the Philippines, died in a hospital in Kyoto just last November 17 - becoming Japan’s first victim of rabies in 36 years. Japan’s health ministry this Wednesday started warning travelers to stay away from dogs while in the Philippines, when another Japanese was diagnosed with rabies after being bitten in the Philippines by a dog.

Rabies is a vaccine-preventable disease. Many countries have successfully controlled, if not virtually eradicated it, through the mandatory vaccination of their dog population, combined with other measures. What is most alarming about the disease is that its largest number of victims are children. In six of every 10 cases of deaths, which have not rated any media attention unlike the Japanese incidents, the victims are children below 15 years old.

In 2005 alone, 271 persons died from rabies, according to the DOH. They are part of the 115,223 people all over the country who were victims of dog bites. This translates to around 316 individuals bitten by a dog every day - or 13 victims every hour in 2005. The number may even be bigger considering that many people who get bitten by dogs fail to seek treatment because of the high cost entailed which can reach P30,OOO.

I thus seek the immediate approval of Senate Bill No. 2541 that would mandate the implementation of a National Rabies Prevention and Control Program. It is more than time that we legislated a program that would protect both man’s best friend and the hand that feeds them. The bill consolidates Senate Bill Nos. 63 1 by Senate President Manny Villar and 1899 by Senator Juan Flavier. There is already a counterpart bill in the Lower House, House Bill No. 4654, that likewise provides for a nationwide anti-rabies program. This bill has already been transmitted to the Senate.

At the core of Senate Bill No. 2541 is the establishment of a multi-pronged, multi- agency effort consisting of the mass vaccination of dogs, the impounding of stray dogs, an information and education campaign on rabies prevention and control, provisions on pre-exposure treatment to high risk personnel and post-exposure treatment to animal bite victims, and the encouragement of the practice of responsible dog ownership.

P 4


Senate Bill No. 254 1 shall make it mandatory for dog owners to register their pet dogs with their local government unit and have them immunized against rabies that shall be monitored by a registration card. Local dog pounds which will house stray and unvaccinated dogs shall be enforced in cities and first-class municipalities, and in adjoining areas.

Dog owners who fail or refuse to have their dog registered and vaccinated against rabies will be fmed P2,OOO. They shall be liable to pay for the vaccination of both their pet dog and the person bitten by their dog. They shall also be fined P500 for every incident that their dog roams the streets without a leash plus additional fees when they retrieve their impounded dog.

Senate Bill No. 2541 further institutes measures to rein in the dog population and minimize the number of unwanted stray dogs through spaying or neutering. Dogs that have been impounded three times will only be released after being spayed or neutered, at the expense of the dog owner. LGUs shall provide an incentive system whereby owners of dogs which have been spayed or neutered will be given a subsidized or discounted pet registration fee.

The National Rabies Prevention and Control Program shall be jointly implemented by the departments of agriculture, health, local government and education, as well as LGUs with the assistance of NGOs involved in animal welfare and the academe.

The DA, which takes care of animal health, shall undertake free, routine anti-rabies vaccination of dogs and establish rabies-free zones in coordination with the LGUs. The DOH, which looks after human health, shall ensure the necessary services and treatment at the minimum expense of the dog bite victims. The Department of Agriculture, in coordination with the DOH, DILG, DepEd, NGOs and the academe, shall pro- mulgate the implementing rules and regulations. The ensuing education campaign will help make Filipinos aware of the dangers of rabies and how it can be prevented and controlled with the cooperation of dog owners alike and concerned sectors and agencies.

The target goal of the whole program is to reduce the incidence of rabies every year and eventually declare the Philippines rabies-free by year 2020.

Senate Bill No. 2541 provides us the key to realizing this goal. The passage of this much- needed legislation provides us the key - and the cure - to conquering an ancient scourge that has

been a historical death sentence to its victims. On behalf of the Senate Committee on Health and Demography and the original authors, I appeal for the immediate passage of Senate BillNo. 2541.



It was 12:19 p.m.


At 12:21 p,m,, the session was resumed.

RESERVATION TO INTERPELLATE

Senator Cayetano stated that Senator Madrigal had made reservation to interpellate on the measure.

REMARKS OF SENATOR ARROYO

Senator Arroyo commended Senator Cayetano and her staff for a wonderful slide presentation of the problem of rabies in the country.

SUSPENSION OF CONSIDERATION OF SENATE BILL NO. 2541




It was 12:22 p.m.



SPECIAL ORDERS

Upon motion of Senator Cayetano, there being no objection, the Body approved the transfer of Committee Report Nos. 178 to 195 on Senate Bill No. 2523 to 2540 from the Calendar for Ordinary Business to the Calendar for Special Orders. #

FNDAY, NOVEMBER 24,2006 809

PROTECTED AREAS BILLS

Upon motion of Senator Cayetano, there being no objection, the following bills were considered on Second Reading:

1. Senate Bill No. 2523 (Committee Report No. 178), entitled AN ACT DECLARING THE MOUNTAINS

OF BANAHAW AND SAN CRISTOBAL IN THE PROVINCES OF LAGUNA AND QUEZoN AS A PROTECTED AREA UNDER THE CATEGORY OF PRO- TECTED LANDSCAPE AND FOR OTHERPURPOSES;

2. Senate Bill No. 2524 (Committee Report No. 179), entitled AN ACT DECLARING THE MT. HILONG-

HILONG RANGE SITUATED IN THE CITY OF BUTUAN AND IN THE MUNICIPALITIES OF REMEDIOS T. ROMUALDEZ, CABADBARAN AND SANTIAGO IN THE PROVINCE OF AGUSAN DEL NORTE AS A PRO- TECTED AREA AND FOR OTHER PURPOSES;

3. Senate Bill No. 2525 (Committee Report No. 180), entitled AN ACT DECLARING LAKES MANAPAO,

KATUGDAY, MAYDANAO AND MAKUAO LOCATED WITHIN THE MUNICIPALlTY OF BUHI, CAMARINES SUR AS A PROTECTED AREA TO BE KNOWN AS THE SINARAPAN SANCTUARY, PROVIDING FOR ITS MANAGEMENT AND FOR OTHER PURPOSES;

4. Senate Bill No. 2526 (Committee Report No. 181), entitled AN ACT DECLARING THE BESSANG PASS

NATURAL MONUMENT IN THE MUNICIPALITY OF CERVANTES, ILOCOS SUR AS A PROTECTED AREA AND FOR OTHER PURPOSES;

5. Senate Bill No. 2527 (Committee Report No. 182), entitled AN ACT TO ESTABLISH THE

MALAMPAYA SOUND SITUATED IN THE MUNICIPALITIES OF TAYTAY AND SAN VICENTE, PROVINCE OF PALAWAN, AS A PROTECTED AREA PURSUANT TO REPUBLIC ACT NO. 7586 (NIPAS ACT OF 1992) PROVIDING

FOR ITS MANAGEMENT AND FOR OTHER PURPOSES;

6. Senate Bill No. 2528 (Committee Report No. 183), entitled AN ACT TO ESTABLISH THE EL-NIDO-

TAYTAY MANAGED RESOURCE PROTECTED AREA LOCATED IN THE MUNICIPALITIES OF EL NIDO AND TAYTAY, PROVINCE OF PALAWAN, ASAPROTECTEDAREAANDFOR OTHER PURPOSES PURSUANT TO REPUBLIC ACT 7586 OTHERWISE KNOWN AS THE NATIONAL INTEGRATED PROTECTED AREAS SYSTEM (NIPAS) ACT OF 1992;

7. Senate Bill No. 2529 (Committee Report No. 184), entitled AN ACT DECLARING THE AGUSAN

MARSH IN THE PROVINCE OF AGUSAN DEL SUR AS A PROTECTED AREA AND FOR OTHER PURPOSES;

8. Senate Bill No. 2530 (Committee Report No. 185), entitled AN ACT DECLARING THE LIDLIDDA-

BANAYOYO LANDSCAPE IN THE PROVINCE OF ILOCOS SUR AS A PROTECTED AREA, PROVIDING FOR ITS MANAGEMENT, AND FOR OTHER PURPOSES;

9. Senate Bill No. 2531 (Committee Report No. 186), entitled ANACTDECLARINGTHEAREACOVERED

BY THENORTHERNNEGROS FOREST RESERVE SITUATED IN THE CITIES OF TALISAY, SILAY, VICTORIAS, CADIZ, SAGAY AND SAN CARLOS AND THE MUNICIPALITIES OF E. B. MAGALONA, MURCIA, TOBOSO, CALATRAVA AND DON SALVADOR BENEDICTO, PROVINCE OF NEGROS OCCIDENTAL AS A PROTECTED AREA PURSUANT TO R.A. 7586 ("AS ACT OF 1992) TO BE KNOWN AS THE NORTHERN NEGROS NATURAL PARK;

10. Senate Bill No. 2532 (Committee Report No. 187), entitled AN ACT DECLARING THE BUHISAN

WATERSHED FOREST RESERVE, THE MANANGA WATERSHED FOREST RESERVE, THE SUDLON NATIONAL PARK, THE CENIXALCEBUNATIONAL PARK AND THE KOTKOT-LUSARAN .#W

E d .

a in

WATERSHED FOREST MSERVE IN THE PROVINCE OF CliBU INTO ONE

AS THE CENTRAL CEHU PROTECTED IANDSCAPE AND FOR OTHER PURPOSES;

PROTECTED AREA To KNOWN

I I . Senatc Bill No. 2533 (Committee Report No. I R R ) , entitled AN ACI' ESTABLISHING TI E IUI3BATAHA

KEEP NAI'IONAL MARINE PARK IN 'IHF PROVINCE OF PAI.AWAN AS A PROlECl'EI) AREA, PROVI1)ING FOR ITS MANAGEMENT AND FOR OTH1:K PURPOSES;

12. Senate Bill No. 2534 (Cnmmittce Kepon No. 189), entitled AN ACT DECLARING 'I'URTLE ISLANDS

ISLANDS, PUOVINCE OETAWI-TAW1 AS I'KOTECIED AREA AND THEIR I'FRIPHERAL AIWAS AS BUFFER ZONES, PROVIDING FOR THEIR MANAGEMENT AND FOR OTHER I'UKPOSES;

13. Senate Bill No. 2535 (Conmitree Report

IN 'THE MUNICIPAI.ITY or: 1 . u w i . E

No. 190), cntitled AN ACT DECLAKING THE AGOO-

I)AMORTIS SEASCAPE AND LAND- SCAPE IN THE PUOVINCE OF LA UNION AS A PROTECIED AREA AND FOK OTHER PKUPOSES;

14. Senate Bill No. 2536 (Committee Repon No. 191). entitled AN ACI ESTABI.ISIIING AI'O REEF IN

AS A I'ROTECI'EI) AREA AND I 1 S PERII'HERAL WATERS AS DUFI:ER ZONES, PROVIDING FOR I13 MANAGE- MENT, FUNDS ANI) FOR OTHER PURPOSFS;

SADLAYAN, occn)i.:Nr.u MINDORO

15. Senate Bill No. 2537 (Comniittce Repon No. 192). entitled AN AC'I ESTARLISHING THE ALIWAG-

WAG FALLS LOCATED IN 'I"E MUNICIPALII'IES OF BOSTON ANI) CATLEL, PROVINCE 01: DAVAO ORIENTAL AND THE MUNICU'ALITY OF COMPOSTELA, PUOVINCE OF COMPOSTELA VALLEY AS A PKO- TECI'IID AREA UNDER THE CATE- GOUY OF PROTECTED LANDSCAPE AND ITS PERIPHERAL AIUiAS AS BU1:FER ZONE, PROVIDING FOK ITS


MANAGEMENT AND FOR OTHER PURPOSES,

16. Senate Bill No, 2538 (Committee Report No. 193), entitled AN ACT DECLARING THE TACDOGAN

REEF IN THE MIDDLE OF TICAO PASS, LOCATED IN THE WATERS BETWEEN THE PROVINCES OF SORSOGON AND MASBATE, A NATIONAL PARK TO BE KNOWN AS THE TACDOGAN REEF NATIONAL MARME PARK;

17. Senate Bill No. 2539 (Committee Report No. 194). entitled ANACTDECLAUNGTHEBALINSASAYAO

TWIN LAKES LOCATED IN THE MUNICIPALITIES OF SIBULAN AND SAN JOSE, PROVINCE OF NEGROS ORIENTAL AS A PROTECTED AREA UNDER THE CATEGORY OF NATURAL PARK AND FOR OTHER PURPOSES; and

18. Senate Bill No. 2540 (Committee Report No. 195), entitled AN ACT TO ESTABLISH THE SIARGAO

GROUP OF ISLANDS AS A PROTECTED AREA PURSUANT TO REPUBLIC ACT NO. 7586 (NIPAS ACT OF 1992) PROWING FOR ITS MANAGEMENT AND FOR OTHER PURPOSES.

Pursuant to Section 67, Rule XXIII of the Rules of the Senate, with the permission of the Body, upon motion of Senator Cayetano, only the titles of the bills were read without prejudice to the insertion of their full texts into the Record of the Senate.

Thereupon, the Chair recognized Senator Cayetano for the sponsorship.

SPONSORSHIP SPEECH OF SENATOR CAYETANO

Senator Cayetano delivered the following omnibus sponsorship speech for the 18 protected areas bills:

Today, we have pending before us a set of 18 bills, covering 20 Senate and House Bills, that all address one single issue: protect nature, preserve thefuture. It is crucial that we act on these now to ensure that our children and the succeeding generations will inherit a living earth with all of its bountiful natural resources and

& vibrant wildlife.

la

FRIDAY. NOVEMBER 24.2006 81 1

Philippine biodiversity in peril

It is no mere advertising glitz that the Philippines is called the “Pearl of the Pacific.” The treasures of our 7,100 islands are world- renowned. The combination of the Philippines’ complex geological origins and its location in the warm tropics has given rise to an extraordinary biological richness and immense diversity. Our moist tropical habitats support many thousands of animal and plant species endemic to the Philippines or found nowhere else in the world.

According to environmentalists, our larger islands hold more unique species than most countries and even our small islands support greater biodiversity than the biologically richest countries in Europe. Many of these species are so unique they are confined to just one island or island group within our archipelago. About 76% of the country’s plant species are endemic, as are more than half of the mammal species. They include the tamaraw, the panther flying frog, the Cebu flowerpecker, the Visayan wrinkled hornbill and the enormous Philippine eagle. Coral reefs near our extensive coastline contain 500 of the world’s 700 known coral species.

But what has been identified as one of the world’s biologically richest countries is today one of 25 “biodiversity hotspots.” The Philippines is in fact among the world’s “hottest hotspots” as it teeters on the edge of ecological collapse, ranking very high in terms of biodiversity loss. This can be traced mostly to man-made causes like rapid deforestation, unregulated land conversion, destructive fishing methods, and air and water pollution. Population pressure, poverty and lack of livelihood opportunities further exacerbate the over-exploitation and non-sustainable use of the country’s natural resources.

Between 1990 and 2000, the Philippines lost more than 800,000 hectares of forests. Only about 7% of the nation’s original lowland forest remains. The country that once bad the most expansive mangrove and coral reefs in Southeast Asia has lost almost 90% of its mangroves, the vast majority since 1970 as mangrove forests have been cleared for timber, fish and shrimp ponds, human settlements, and agricultural and industrial development.

With the destruction of their habitat, more than 400 plant and animal species in the Philippines are currently threatened with extinction, including the famous Philippine eagle, the tamaraw and the dugong. Many endemic species are confined to forest fragments that cover only seven percent of the original extent of the hotspot. Clearing mangrove swamps have further degraded areas

important to the fishing industry and left the coastline more vulnerable to typhoons and tidal currents.

We all know that the environment, population and health are intricately interconnected and complex. The health and well-being of Filipinos have become increasingly compromised as the landscape becomes more polluted and the productivity of the country’s agricultural lands and fisheries more degraded and pushed beyond their capacity to produce. With 9.7 million Filipinos employed in agriculture, hunting, and forestry activities and another 3.1 million employed in fishing, the loss of productivity of agricultural lands and fisheries has negatively affected the livelihoods and well-being of people.

NIPAS: Landmark environmental legisration

In 1992, Republic Act No. 7586 was passed to protect the country’s remaining forests and stop the wholesale loss of more natural habitats. Called the National Integrated Protected Areas System Act of 1992 or NIPAS for short, it was a landmark act of legislation that sought to take effective action before many more unique species were lost to Filipinos not yet fully aware of the riches that they possess.

The primary objective of NIPAS is the classification and administration of all designated protected areas to maintain essential ecological processes and life-support systems, to preserve genetic diversity, to ensure sustainable uses of resources found therein, and to maintain their natural conditions to the greatest extent possible. Its underlying policy is to secure for present and future generations the perpetual existence of all native plants and animals through the establishment of a comprehensive system of integrated protected areas within the classification of national parks as provided for in the Philippine Constitution.

What are these protected areas? Protected areas are outstanding remarkable areas and biologically important public lands that are habitats of rare and endangered species of plants and animals, bio-geographic zones and related ecosystems, whether terrestrial, wetland or marine. They are identified portions of land and water, set aside by reasons of their unique physical and biological significance, that have managed to enhance biological diversity and be protected against destructive human exploitation.

The categories of protected areas are Strict Nature Reserve, Natural Park Natural Monument, Wildlife Sanctuary, Protected Landscapes and Seascapes, Resource Reserve, Natural Biotic &


Areas, and other categories established by law, conventions or international agreements which the Philippine Government is a signatory to.

The NIPAS law applies as well to practically all types of specially designated areas that require conservation or protection, whether they are simple parks for the recreational use of Filipino citizens, or natural habitats of all manner of flora and fauna.

The NIPAS law recognizes that these areas, although distinct in features, possess common ecological values that may be incorporated into a holistic plan representative of our natural heritage; that effective administration of these areas is possible only through cooperation among national government, local government and concerned private organizations; that the use and enjoyment of these protected areas must be consistent with the principles of biological diversity and sustainable development. (Section 2)

All national parks and protected areas have been placed under the National Integrated Protected Areas System. It is nationally administered by the Department of Environment and Natural Resources through the Protected Areas and Wildlife Bureau. Each designated protected area or NIPAS site, as it is commonly !mown, mnst be managed by a multi-sectoral Protected Area Management Board in accordance with a management plan formulated specifically for the area. (Sections 10, I I )

To date, according to records of the DENR, there are 103 proclaimed protected areas under the NIPAS network, including 67 initial components and 36 additional areas. However, only eight areas are covered by laws - Mt. Kanlaon, Mt. Apo, Mt. Kitanglad, Sagay Marine Reserve, Northern Sierra Madre, Mt. Hamuiguitan, Mt. Malindang and the Batanes islands. Imple- menting rules and regulations are now either being prepared or revised for each of these areas based on their specific concerns.

20 bills for 18 additional NlPAS areas

The order of the day now is to increase further the number of protected sites established under the National Integrated Protected Areas System. In this regard, as I have mentioned earlier, we now have a set of 18 bills that require our collective attention and approval while the ecological time bomb ticks. These bills designate 18 priority sites that are among our country’s most beautiful and most scenic spots and which have been rated by the DENR as “Extremely High Critical” or even as “Extremely High Urgent” for

biodiversity conservation as protected areas under NIPAS.

Allow me to briefly cite the salient features of each of these bills and their proposed protected areas. I am sure some of these areas are already familiar to most of us here since they are well- hown eco-tourist havens. Let us start from north to south.

REGION I No. 1 is the BESSANG PASS NATURAL

MONUMENT under Committee Report No. 18 1. Comprised of a core parcel of 693 hectares and a buffer zone of 421 hectares in Cervantes, Ilocos Sur, tbe Bessang Pass is known for its intact stand of pine forest in Region I and as the site of the historic Battle of Bessang Pass during World War 11. A shrine honors the 1,200 Ilocano and Igorot guerrillas who died in that battle. The Bessang and Matukbo creeks drain the natural park and both flow into the Chico river - considered as the cleanest inland water body in the province and region. Its watershed and forest were declared protected area by Presidential Proclamation 55 in 1954 and by Presidential Proclamation 284 in 2000.

No, 2 is the LIDLIDDA-BANAYOYO PROTECTED LANDSCAPE under Committee Report No. 185. Also located in Ilocos Sur, this billy area of open forest, brushland, grassland and watershed spans the municipalities of Lidlidda, Banayoyo and San Emilio. It is home to a variety of bird species and other diverse animal and plant life. Most of its residents belong to the Tingian-Bag0 ethnic group. In 1936, Presidential Proclamation 79 designated the Lidlidda Spring Watershed Forest Reserve in recognition of the need to protect the whole area as a natural sanctuary. More permanent legislation is, however, necessary today to address the problems of wildlife hunting, timber poaching, squatting and unclear boundaries.

No. 3 is the AGOO-DAMORTIS PRO- TECTED SEASCAPE & LANDSCAPE under Committee Report No. 190. The area covers 19 barangays within the municipalities of Agoo, Sto. Tomas and Rosario, La Union. It falls within Lingayen Gulf which was designated an “Environmentally Critical Area” by Proclamation 156 in 1993. Its forest and wetlands are home to various tree and seagrass species, migratory birds, and a rich marine life and coral species that are now the subject of marine fossil research. Legislative intervention is necessary to protect all this natural richness from the rising encroachment of squatters, fish cages, illegal trawlers as well as dynamite fishing. +#

P


REGION lV

No. 4 is the MOUNTS BANAHA WAND SAN CRISTOBAL PROTECTED LANDSCAPE under Committee Report No. 178. This covers 10,900 hectares spanning the provinces of Laguna and Quezon. It was declared a protected area by Presidential Proclamation No. 41 1 in 2003. Its rich biodiversity that demands our protection includes 578 animal species, 28% of which are categorized as endemic and 2% threatened with extinction, and 56 species of plants classified as endemic. The whole area is a critical watershed that drains into Laguna de Bay and Tayabas, supporting the Botocan Hydroelectric Power Plant in Majayjay and Luisiana, Laguna and sustaining the water needs of at least one million people. It is considered sacred ground by various religious sects.

No. 5 is the APO REEF NATURAL PARK under Committee Report No. 191. Located in Sablayan, Occidental Mindoro, this bio-geographic zone spans a core area of 15,792 hectares and a buffer zone of 11,677 hectares. It hosts the largest coral atoll-like reef in the Philippines identified as a high priority area for conservation of reef fishes and corals. It also has a mangrove forest and lagoon that provide the habitat of the endangered Nicobar Pigeon and a beach that serves as nesting areas of the likewise endangered Green Sea Turtle and Hawksbill Turtle.

No. 6 is the MALAMPAYA SOUND PRO- TECTED LANDSCAPE AND SEASCAPE under Committee Report No. 182. Spanning 200,115 hectares in Taytay and San Vicente towns in Palawan, it was declared a protected area by Presidential Proclamation No. 342 in 2000. Its endangered wildlife species include the Palawan Bear Cat, Palawan Porcupine and scaly anteater. It has forest landscape as well as watershed and water areas rated “Extremely High Urgent” (EHu) for marine biodiversity conservation.

No. 7 is the TUBBATAHA REEF NATURAL PARK under Committee Report No. 188. In August 2006, Presidential Proclamation No. 1126 declared its reef area of 96,828 hectares as protected sanctuary of diverse marine life. Located within Central Sulu Sea, Tubbataba is under the municipal jurisdiction of Cagayancillo, Palawan. This 1993 UNESCO World Heritage Site and top SCUBA diving destination is also a RAMSAR site under the Ramsar Convention on Wetlands which identified it as “Extremely High” for marine biodiversity conservation.

No. 8 is the EL NIDO-TAYTAY MANAGED RESOURCE PROTECED AREA under Committee

Report No. 183. Located in the municipalities of El Nido and Taytay in northwest Palawan, its area of 89,135 hectares with 14 major river systems was declared protected by Presidential Proclamation 32 in 1998. This top tourist destination is rated “Extremely High Critical” (EHc) for marine biodiversity conservation. It has four species of endangered marine turtles, 197 fish species including rare and endangered dolphins and whales, as well as 16 species of bird endemic to Palawan and six species of large and rare terrestrial mammals.

REGION V

No. 9 is the SINARAPANSANCTUARY under Committee Report No. 180. Its 16.8 hectares are comprised of Lakes Manapao, Katugday, Danao and Maknao, all located within the municipality of Buhi, Camarines Sur. The sanctuary was established within the Barit River-Lake Buhi Forest Reserve under Proclamations 224 and 258 in 1987 and put under the administrative jurisdiction of the National Power Corporation. It is the known habitat and breeding area of the world’s smallest fish (Mysfiches Luzonensis), locally known as “sinarapan” that is endemic to Lake Buhi and considered by the Bureau of Fisheries and Aquatic Resources as protected species. Lakes Manapao and Katugday are cited as conservation priority areas with a rating of extremely high critical priority due to the various threats posed by socioeconomic pressures on the lake area.

No. 10 is the TACDOGANREEF NATIONAL MARINE PARKunder Committee Report No. 193. This bmier reef with a depth of 30 feet is situated in the middle of Ticao Pass in the waters between Sorsogon and Masbate. A known habitat of manta rays, it is included as a high priority site for biodiversity conservation.

REGION VI

No. 11 is the NORTHERN NEGROS NATURALPARKunder CommitteeReportNo. 186. This 80,455 hectare area located on the northern portion of Negros Island, Negros Occidental was declared a protected area through Presidential Proclamation No. 895 last August 2005. It is home to two globally endangered mammals: the Philippine Spotted Deer and the Visayan Warty Pig. The Northern Negros Natural Park is the only source of potable water and agricultural needs for the municipalities and cities of Central and Northern part of Negros Occidental. The site has potential for ecotourism due to the presence of natural features such as waterfalls, sulfur springs, geysers, historical sites and bountiful y


species of flora and fauna. The proclamation of the protected area shall ensure the sustainability of the Northern Negros Forest Reserve which is currently under threat due to poaching, hunting and kaingin activities brought about by increasing population of the nearby communities.

REGION W

No. 12 is the CENTRAL CEBUPROTECTED LANDSCAPE under Committee Report No. 187. Comprising this single protected area in the province of Cebu are the Buhisan Watershed Forest Reserve, the Mananga Watershed Forest Reserve, the Sudlin National Park, the Central Cebu National Park and the Kotkot-Lusaran Watershed Forest Reserve. About 29,060 hectares in all, they straddle 40% of metro Cebu. They host 74 endemic or indigenous faunal species, 11 of which are listed under the “highly threatened species” category. The headwater of the Mananga Watershed is home to the newly discovered damselfly. The remnant forest of Central Cebu National Park is also home to rare and endangered species such as the elegant tit mouse, the black shama (siloy) and the Cebu flowerpecker.

No. 13 is the BALINSASAYAO TWIN LAKES NATURAL PARK under Committee Report No. 194. Covering 8,000 hectares, its unique two upland lakes and thick forested cover are located in Sihulan and San Jose, Negros Oriental. The area is the last remaining primary lowland forest in Negros that contains an important watershed with an appreciable level of biodiversity in terms of floral and faunal ecosystems. It is the habitat of the bare-backed fruitbat. The park is within the proclaimed Palinpinon Geothermal Energy Reservation under the administrative jurisdiction of the PNOC.

REGION XI

No. 14 is the ALIWAGWAG FALLS under Committee Report No. 192. Its core area of 10,491.33 hectares and buffer zone of 420.6 hectares cover the municipalities of Boston and Cateel in Davao Oriental and Compostela in Compostela Valley province. Its cascading waters 280 meters above sea level are a big tourist draw in Region XI. The waterfall serves as a catchment to the critical watershed of Cateel River and has a high potential for hydro-electric power generation to service the energy requirements of three provinces - Davao, Agusan del Sur and Surigao del Sur. Identified as the “Terrestrial Biodiversity Corridor for Eastern

Mindanao,” its flora include rattan species considered threatened for extinction and 50 species of fauna, among them deer and monitor lizard species that are also most endangered. Majority of the people residing in the area belong to the Mandaya tribe who depend on agricultural activities as their source of livelihood.

REGION XIIl No. 15 is the ISLANDS OF SIARGAO AND

BUCASGRANDEunder Committee Report No. 195. Covering nine municipalities in Surigao del Norte, its 278,914 hectares of 76% marine area and 24% land area were declared a protected area by Presidential Proclamation 902 in 1996. Its conservation status is rated “Extremely High Critical” in order to protect its ecosystem of primary lowland forest, caves, streams and rivers, mangroves and coral reefs. Siargao has fabulous flora, 46.34% ofwhich are considered endemic to the islands, and fauna that include 85 bird species, which are 65% endemic; nine amphibian species that are 33% endemic; and 21 mammal species which are 67% endemic.

No. 16 is the MOUNT HILONG-HILONG RANGE under Committee Report No. 179. Covering 25,833 hectares, it is situated in the city of Butuan and in the municipalities of Remedios T. Romualdez, Cabadbaran, and Santiago in Agusan del Norte. In 1991, Presidential Proclama- tion No. 834 established the Cabadbaran River Watershed Forest Reserve of 16,025 hectares. Mt. Hilong-Hilong has a conservation status of “Extremely High Critical” as logging activities threaten to wipe out its old-growth forest and residual forest predominantly inhabited with endangered trees like the mangkono, yakal, the red and white lauan, molave and nata. The mountain range is also home to the critically endangered Philippine eagle. Declaring the area a protected area under NIPAS will maintain the ecological balance of Agusan and sustain the capacity of the watershed to supply water for domestic and irrigation purposes.

No. 17 is the AGUSANMARSH WILDLIFE SANCTUARY under Committee Report No. 184. This was established in 1996 under Presidential Proclamation No. 913, with a core area of 14,835 hectares and a buffer zone of 4,360 hectares spanning six municipalities in Agusan del Sur. House Bill No. 4856, however, proposes that the area he expanded to 40,868 hectares because of its “Extremely High Critical” conservation status. Legislating the Agusan marsh as a protected area will preserve one of the largest freshwater wetland ecosystem in the Philippines which supports more than 15% of the fresh water resource in the country, because it is the catch basin of the Agusan-Davao plains. This will also .y/

P


protect its swamp forest and peatland that serve as wintering ground for numerous species of migratory birds from Northern Asia.

ARMM

No. 18 is the TURTLE ISLANDS WILDLIFE SANCTUARY under Committee Report No. 189. Nestled in the Sulu Sea, the Turtle Islands consist of Boan, Langaan, Lihiman, Great Bakkungan, Taganak and Baguan. The islands are, of course, most famous for harboring one of the world’s ten remaining major nesting grounds for green turtles (Chelonia mydas). About 80% of the Philippines’ remaining marine turtle resource is found in the area. The area also supports a remarkable diversity of marine fauna, notably corals and fishes, as well as a number of species of terrestrial plants, birds and other reptiles. The 50 seaweed species found in the islands represent 32% of the 158 macrobenthic seaweeds identified from 18 coastal provinces in the country. Turtle Islands are said to exhibit the highest diversity in terms of marine communities among all NIPAS sites in the country. However, marine turtle poaching, increasing number of migrants and illegal fishing highlight the need to declare the whole area a sanctuary.

Necessiw of IegisIative enactments for protected areas

The sustainable management of our critical wetlands, forestlands and watersheds is an important gauge of our couutry’s capacity for sustainable development. The NIPAS has already established the legal framework for the management and protection of endangered ecosystems across our country. Each of these 18 bills contains standard provisions patterned after the NIPAS act such as the duties and responsi- bilities of the Protected Area Management Bureau, the creation of the Protected Area Superintendent Office, the creation of a Protected Area Fund, and prohibited acts and penalties for violations thereof. However, the particular characteristics and peculiar level of protection needed to manage 18 ecosystems are elucidated in each of these 18 bills.

The bills directly address problems relating to the loss and degradation of diverse flora and fauna, uncontrolled deforestation in critical watershed areas, increasing pollution of mangrove swamps and coral reefs that are important fish breeding grounds, the mismanage- ment and abuse of forest and marine resources. In sum, these 18 bills underscore the imperative need to protect our God-given heritage before it is too late.

Not only have these 18 bills gone through the hearing process of the Committee on Environment and Natural Resources, there has been extensive consultations with the Protected Areas and Wildlife Bureau of the DENR and other concerned groups as well. Together, we have standardized their general provisions, taking into account the peculiarities of specific areas like the presence of indigenous peoples and tenured migrants, if any. Particular attention was stressed on the following points -

One, express classification of lands, scope and boundaries. This is to ensure that any classification of a protected area is made in accordance with that provided for under the Constitution and to prevent any arbitrary classification that might be contrary to the interests of a protected area. By virtue of this provision, reclassification may only be made through an act of Congress. This also formally declares the inclusion of the area sought to be protected within the ambit of the NIPAS.

Two, composition and term of office of the Protected Area Management Board. The term of members of the PAMB is set at five years. PAMB members who are elected officials have a term of three years. A PAMB member automatically ends his term when he is no longer connected with the office. Details of officers’ powers and duties have been included in the bills.

Three, establishment of a Protected Area Fund. The PAMB can retain its income and spend at their discretion, subject to COA rules and regulation. Without this provision, the income from the protected area will be remitted to the National Treasury and will have to be appropriated by Congress before the same can be spent for the particular protected area. Additional budget should be appropriated in the General Appropriations Act.

Four, tenured migrants and prior rights. This is in recognition of the Bill of Rights provision prohibiting the passage of ex post facto laws that adversely affect established rights. Prior rights may refer to tenurial instru- ments like timber licensing agreements, Industrial Forest Management Agreements, and other rights over areas covered by the protected area.

Five, limits on the utilization of resources. This limits the power of the PAMB over the utilization of resources within the protected area. As a general rule, the utilization or exploitation of nonrenewable resources is not allowed. Energy projects shall require congressional&

816 FRIDAY & MONDAY, NOVEMBER 24 & 27,2006

approval except if the same is below three- megawatt capacity.

Six, provision for special and retained counsel. This reiterates the NIPAS provision mandating the DOJ to appoint a special prosecutor in the protected area which is necessary for the protection of the protected areas and other stakeholders usually counter- charged. This will also enable the special prosecutor to specialize in the prosecution of offenses for violation of the law.

Seven, protection of indigenous peoples. This provision stresses recognition and protection of the rights of indigenous communities, especially on their claim over ancestral domains.

Let us continue the job that Congress set forth with NIPAS in 1992 to protect the environment, to conserve resources, to restore the habitat. By establishing additional urgent protected areas around the country, we conserve the uniqueness of a site’s biological and physical features. We foster partnership between government, nongovernment and people’s organizations to preserve ecosystems in their natural state. We provide education, research and environmental monitoring, tourism and alternative economic opportunities to sustainably optimize the use of resources.

By voting to approve this set of 18 bills, we cast a vote for the future today.



It was 12:58 p.m.



INQUIRY OF SENATOR ARROYO

Senator Arroyo commended Senator Cayetano for an excellent presentation on the many places that should be protected in the country. He inquired if the bills would be passed on Third Reading.

The Chair replied that bills could not be passed on Third Reading because there were reservations for interpellation.

SUSPENSION OF CONSIDERATION OF HOUSE BILLS

Upon motion of Senator Cayetano, there being no objection, the Body suspended consideration of the House bills.

EIGHTH ADDITIONAL REFERENCE OF BUSINESS

The Secretary of the Senate read Proposed Senate Resolution No. 594, which the Chair referred to the Committee on Rules, entitled

RESOLUTION EXPRESSING THE PROFOUND SYMPATHY AND SINCERE CONDOLENCE OF THE SENATE OF THE PHILIPPINES ON THE DEATH OF PUBLISHER AND COLUMNIST MAXIM0 V. SOLIVEN

Introduced by Senator Villar


Upon motion of Senator Cayetano, there being no objection, the Chair declared the session suspended until ten o’clock in the morning of Monday, November 26, 2006.

It was 1:02 p.m


At 10:23 a.m., Monday, November 27,2006, the session was resumed with Senate President Manny Villar Jr, presiding.


(Continuation)

Upon motion of Senator Drilon, there being no objection, the Body resumed consideration, on Second Reading, of House Bill No. 5794 (Committee Report No. 160), entitled

AN ACT APPROPRIATING FUNDS FOR

MENT OF THE REPUBLIC OF THE PHILIPPINES FROM JANUARY ONE

THOUSAND SEVEN, AND FOR


TO DECEMBER THIRTY-ONE, TWO

P K OTHER PURPOSES.

MONDAY, NOVEMBER 27,2006 817

Senator Drilon stated that the parliamentary status was still the period of interpellations.

Thereupon, the Chair recognized Senator Drilon, Sponsor of the measure.

JUDICIARY

Senator Drilon stated that the proposed budget of the Judiciary for 2007 is P9,347,771,000 that includes a Special Judiciary Fund for nonrecurring expenses. He explained that the special fund provision was made considering the constitutional provision which prohibits Congress from reducing the budget of the Judiciary from that of the preceding year. He pointed out that the budget of the Judiciary for the current year, even without the Special Fund, is P7,583,732,000.

INTERPELLATION OF SENATOR LACSON

Replying to Senator Lacson’s queries, Senator Drilon informed the Body that there are 1,115,830 permanent positions in the bureaucracy, of which 54,409 are unfilled. Of the 1.4 million government employees, he said that 32,596 or a little over 2% are in the Judiciary, broken down as follows:

Supreme Court -- 30,031 Presidential Electoral Tribunal -- 233 Sandiganbayan ~~ 423 Court of Appeals -- 1,674 Court of Tax Appeals -- 235

At this j u n c t u r e , the Senate P r e s i d e n t relinquished the Chair to Senate President Pro Tempore Juan M. Flavier.

Moreover, Senator Drilon disclosed that of the total national budget of P1.126 trillion for 2007, the Executive branch has P570 billion; the Legislative bmch, P4.8 billion; and the Judicial branch, P9.6 billion. He affirmed that the budget of the Judiciary is 0.85% of the total national budget.

To the observation that there is inequity in the distribution of the resources of government, Senator Drilon agreed. He recalled that Congress raised the salaries of judges but the increases were sourced from the filing fees as the budget could not absorb an additional deficit at that time. He agreed that the Judiciary should have more support. On further

query, he informed the Body that the five principal agencies under the Judiciary are the Supreme Court, Presidential Electoral Tribunal, Sandiganbayan, Court of Appeals, and Court of Tax Appeals.

On the statement that the Judiciary ought to be rewarded, especially the Supreme Court, for its recent decisions that showed its independence and integrity, by augmenting its budget for 2007, Senator Drilon believed that the independence of the Judiciary should be maintained in the budget and in the Constitution. In this regard, he pointed out that the Constitution provides that the appropriations for the Judiciary should not be decreased from that of the preceding year, and these should be released automatically. Further, he informed the Body that the Committee, in fact, increased the budget of the Judiciary as submitted by the President by including P35 million for the Philippine Judicial Academy; P22 million for the subsidy to the Expanded Legal Aid Program of the Integrated Bar of the Philippines; and P53 million for various expenses. He expressed openness to an amendment at the proper time which would realign funds from other sources to augment the budget of the judicial branch.

On the budget of the Court of Appeals, Senator Lacson noted that in the previous year’s budget, the CA did not have money to sustain its operations in the Visayan region.


Upon motion of Senator Lacson, the session was suspended.

It was 10:38 a.m.



Senator Drilon informed the Body that the Committee increased the budget of the Court of Appeals as submitted by the President by a total of P109 million, broken down as follows: P537 million for the creation of additional personnel; P35.668 million, MOOE for Cebu and Cagayan judicial branches; P25.585 million, operational expenses of 18 justices in Cebu and Cagayan; and P48.150 million, capital outlay for Cebu and Cagayan branches. He explained that the P48.150 million was placed under the Special Judiciary Fund as it is a nonrecumng

818 MONDAY, NOVEMBER 27,2006

expense, so the appropriation could be reduced the following year without going against the constitutional prohibition. He clarified that of the P109 million increase, P53.2 million was added to the Judiciary branch proper while P48.150 million was placed in the Fund. He expressed openness to adding the entire P109 million to the budget of the Judiciary as long as there is a basis for removing the capital outlay expenses once the projects have been completed.

INTERPELLATION OF SENATOR ENRlLE

Senator Enrile noted that the President submitted a budget of P9.675 billion for the Judiciary and its attached agencies, representing an increase of P1.141 billion or 13.37% over its current budget of P8.534 billion.

Senator Enrile asked on the rationale for dividing the P9.348 billion budget into two parts: P8.614 billion for the Judiciary Proper, and P733.475 million as Special Judiciary Fund, under which are nonrecurring items such as the construction of a building that has a capital outlay. Senator Drilon reasoned that this is in compliance with the constitutional provision that prohibits Congress kom reducing the preceding year’s appropriation of the Judiciary.

Asked if the budget of the Judiciary Proper is the only portion that could not be reduced, while the Special Judiciary Fund, once exhausted, would no longer be part of the annual budget of the Judiciary, Senator Drilon replied that once the purpose of the budgetary item has been achieved, then logic and prudent fiscal management dictate that it should no longer be appropriated unless there is another project which would require a capital outlay or unless the equipment or building under the capital outlay requires maintenance, in which case, a maintenance and operating expense would be appropriated in the regular Judiciary budget. He affirmed that Congress cannot reduce the budget for the Judiciary Proper. With respect to the disaggregation, he said that the matter was relayed to the Supreme Court during the committee hearings; in fact, the Court Administrator only this morning requested the Committee if the Court’s finance people could further review and comment on the same, to which the Committee agreed since the committee report has not yet been approved.

In reply to a related query, Senator Drilon said that the Supreme Court has not yet approved nor rejected the formula adopted by the Committee; but

as a matter of courtesy to a coequal branch of government, the Court Administrator was informed of the matter as early as a month ago and he indicated that the Supreme Court understood the rationale of the provision.

In the event the 2007 budget becomes a law, Senator Enrile asked if the disaggregation in the Judiciary’s budget would not resolve the issue of whether Congress could reduce the same. Senator Drilon said that the 2007 budget of the Judiciary Proper at P8.614 billion is still higher than the current year’s budget of P7.523 billion.

Senator Enrile contended that even if Congress approved the disaggregated 2007 budget of the Judiciary, the issue still remains that constitutionally, such budget could not be reduced to the level of the aggregate amount for 2007. Senator Drilon admitted that the matter has not been resolved by the Supreme Court.

Asked on the notable 88% or P578-million increase in the allocation for “Other Benefits” of civilian personnel from P659.11 million in 2006 to P1.238 billion in 2007, Senator Drilon pointed out that this is the proposed increase by virtue of the executive order issued by President Macapagal Arroyo adjusting the civilian personnel’s salary by P1,OOO per month and would fall under the Judiciary Proper budget.

Regarding the 93% increase in “Extraordinary and Miscellaneous Expenses” under MOOE from P93.639 million in 2006 to P180.582 million in 2007, Senator Drilon explained that this is due to the increase in the schedule of Extraordinary and Miscellaneous Expenses as decreed by the Executive branch for employees in the civilian government, including the Judiciary, specifically Section 26 of the General Provisions of the National Expenditure Program, to wit:

Sec. 26. Extraordinary and Miscellaneous Expenses. Appropriations authorized herein may be used for extraordinary expenses of the following officials and those of equivalent rank as may be authorized by the DBM, not exceeding

P220,OOO for each Department Secretary; P90,OOO for each Department Undersecretary; P50,OOO for each Department Assistant Secretary; P38,OOO for each head of bureau or organization of equivalent rank, and for each head of a Department Regional Office; 4

MONDAY, NOVEMBER 21,2006

(e) P22,OOO for each head of the Bureau Regional Office or organization of equivalent rank; and

(0 P16,OOO for each Municipal Trial Court, Municipal Circuit Trial Court Judge, and Shari’a Circuit Court Judge.

In addition, miscellaneous expenses not exceeding Sixty Thousand Pesos (P60,OOO) for each of the offices under the above named officials are herein authorized.

For the purpose of this section, extraordinary and miscellaneous expenses shall include, but not limited to, expenses incurred for: (a) Meetings, seminars and conferences; (b) Official entertainment; (c) Public relations;

(d) Educational, athletic and cultural activities;

(e) Contributions to civic and charitable institutions;

(f) Membership in government associations;

(9) Membership in national professional organizations duly accredited by the Professional Regulation Commission;

(h) Membership in the Integrated Bar of the Philippines;

(i) Subscription to professional technical journals and informative magazines, libraty books and materials;

6) Office equipment and supplies; and

(k) Other similar expenses not supported by the regular budget allocation.

No portion of the amounts authorized herein shall be used for salaries, wages, allowances, confidential and intelligence expenses. In case of deficiency, the requirements for the foregoing purposes may be charged against savings of the agency.

Senator Enrile expressed doubts on the allocation of funds for public relations, representation and entertainment expenses even as he acknowledged that this is the prerogative of the institution. He then asked on the absolute amounts used by the Judiciary for the purpose.



It was 11:Ol a.m.



Upon resumption, Senator Drilon said that he was informed by the Court Administrator and his staff that they have not charged any item for public relations under “Extraordinary and Miscellaneous Expenses.”

Asked if extraordinary and miscellaneous expenses include traveling expenses, Senator Drilon replied that these fall under a separate item.

Senator Enrile asked on the total amount expended by the Judiciary in 2006 for extraordinary and miscellaneous expenses, and whether these include representation and entertainment expenses. Senator Drilon replied that the Supreme Court has a Program Management Office in charge of foreign-assisted projects that the Judiciary is undertaking, to which representation and entertainment expenses are being charged.

Noting that the P9.348 billion budget for the Judiciary would be coming from the general fund, Senator Enrile asked whether the Judiciary collects any monies that do not enter the general fund but are expendable. Senator Drilon stated that the Judiciary Development Fund (JDF), in particular, is a source of funding for the operations of the Judicial branch, which comes from the collection of filing fees.

Asked how much the Judiciary has spent in terms of the JDF and on top of its allotment under the general fund, Senator Drilon replied that the JDF has a total collection of P1,660,681,150.88 from December 2003 to July 2006. In terms of monthly collection, he said that the JDF had an average of P80 million from Jannary to August 2007. He explained that 80% of the monthly collection was utilized for the additional compensation and allowances of the members of the Judiciary pursuant to law, while the remaining 20% was used for the motorcycle acquisition program; computer acquisition for justices, judges and lawyers of the Supreme Court, and nonlawyers in the Judiciary; rehabilitation and constmction of the Halls of Justice; repairs and renovation of Supreme Court facilities; and equipment, furniture and fixtures, motor vehicles and other maintenance and operating expenses.

Noting that under the item on capital outlay, the allocation for the office equipment, furniture and Mum +’


increased from P40.68 million in 2006 to P297.283 million in 2007, Senator Enrile inquired into the purchases to be made to justify the budgetary increase.



It was 11:13 a.m.



Senator Drilon said that the increase would cover the expenses of the Judicial Reform Program, a foreign-assisted project that is assisted by a World Bank loan, which is intended to increase the access of the people to the court system, hasten the resolution of cases through the purchase of equipment, and allow better access of judges to research materials through the internet.

At this point, Senator Enrile read the following into the record

The Philippines was identified as having one of the worst judicial systems in Asia. The country ranked 9 among 12 countries in the 2005 survey by the Political and Economic Risk Consultancy (PERC). The Philippine rating in this survey fell sharply to 8.10 from a previous rating of 7.71.

Moreover, the Philippine judicial system has been mired in corruption and inefficiency according to the 2004 Country Reports on Human Rights Practices of the US. State Departments, Bureau of Democracy, Human Rights and Labor. The report identified the following issues facing our judicial system: 1) Physical abuse of suspects and detainees as well as prosecutorial and judicial corruption; 2) Failure of judicial system to ensure expeditious trials for detained persons. The average trial takes about two years. Progress is impeded due to lengthy delays between hearings and the fact that trials are not heard all at once but in short sessions over a longer period of time and only as witnesses are available; and 3) The judicial system does not ensure the rights of defendants to due process and legal representation. At times, defendants in the penalty cases lack adequate legal representation at the time of arrest, indictment, or trial.

Senator Enrile commended the Supreme Court for having settled some of the very difficult constitutional issues such as those involving the People’s Initiative, Executive Order No. 464 and Proclamation 1017, and the immunity of the Presidential Commission on Good Government (PCGG). Nonetheless, he asked on the measures being undertaken to address each of the abovementioned concerns, the performance rating of the Philippine judicial system in terms of the resolution of cases filed in courts, the outcome with respect to the implementation of the judicial reform project, and the recent accomplishments of the Judiciaty. He requested that his commendation and questions for the Judiciary, together with the answers, be inserted into the record.



It was 11:ZO a.m.



Upon resumption, Senator Drilon said that the Court Administrator has given the information that the office has received letters fromNGOs complaining about the physical abuse of detainees, and the Court Administrator has directed the executive judges in the regional trial courts concerned to submit a report on the matter. He gave assurance that Senator Enrile would be given a more detailed report as soon as the Committee receives the reply from the Court Administrator.

Senator Enrile observed that the congested situation of Metro Manila jails has been widely reported in television and newspapers and it is time the problem was addressed lest the right to a speedy trial of people behind bars is violated. He stated that many have been languishing in jails for periods longer the actual penalties of the crime they committed just because their cases could not be discharged by the judicial system. Senator Drilon agreed, as he expressed the belief that the courts should be more pro-active on this issue.

On another matter, Senator Drilon informed the Body that the Court Administrator has submitted data on the number of administrative complaints filed ,p

P

MONDAY. NOVEMBER 27.2006

and resolved in 2005 and the data would be made available to Senator Enrile. However, he admitted that the Court Administrator was not able to provide the Committee data on how the Judicial Reform Program has improved the administration of justice in terms of expediting the trials of detained persons. However, he gave assurance that Senator Enrile would be provided a copy of the data as soon as the Committee receives them.

Senator Enrile noted that the Supreme Court is the only court that does not have a significant backlog, but the Court of Appeals, the Court of Tax Appeals, the Sandiganbayan, the Special Anti-Comp- tion Court and the lower courts continue to receive more cases that they can resolve and it has been the same for the past 13 years. He cited the principal causes for the delay and the congestion, to wit:

The vulnerability of the judicial process to dilatory tactics and forum-shopping by astute or sometimes corrupt lawyers and their clients who are seeking delay;

A severe shortage of resources and a weak administrative structure that prevents the efficient use of existing resources;

The requirements that courts hear certain types of cases no matter how trivial the dispute or how little the social benefits such as those arising from bouncing checks and returned checks;

Inefficiencies in other pillars of justice particularly in the investigative, apprehen- sion, prosecution, and legal aid agencies; and

Limited use of alternatives to litigation such as mediation, conciliation and arbitration.

Senator Enrile further cited the World Bank findings which show the severe weaknesses in the prosecution of criminal cases and the clogging of courts with cases that are untimely dismissed. He added that the difficulty of the poor to access the court is a result of many factors such as the need to often travel great distances just to reach a court- house; and the high costs which encompass attorney’s fees and income forgone due to detention, delayed resolution of cases, erroneous decisions of courts as well as the defendant’s ignorance of his legal rights.

t

t

t

t

t

Senator Enrile asked on the increase in capital outlay in the proposed budget and whether it would address the urgent need to reduce the backlog, what measures have been made to address the causes of delay in the resolution of cases and what reforms in the Judiciary have been made to increase the access to courts by poor litigants. Senator Drilon stated that hundreds of courtrooms were consimcted under the Justice System Infrastructure Program but because of the increase in the number of judges, there is still a courtroom shortage.



It was 11:34 a.m



Upon resumption, Senator Drilon stated that Senator Enrile would be provided a copy of the record as soon as it becomes available. He reported that as of September 30, the number of courts created by law - excluding the Sandiganbayan, the Court of Tax Appeals and the Court of Appeals - is 2,153, of which 2,069 were funded and organized; and of the 2,069 courts, there were 620 vacancies.

Asked what happens to organized and funded courts that have no personnel, Senator Drilon confirmed that the funds for these courts are considered as savings that amounted to P427,998,446.94, broken down as follows:

t P16.1 million - deficit in PhilHealth contributions

P15.1 million - deficit in ECC contributions

PI million - deficit in supplies and materials

P1 million - deficit in rental expenses

P6.3 million - deficit in freight of supplies

P3 1.5 million - deficit in miscellaneous and extraordinary expenses

t

t

t

t

t

t P12.3 million - for loyalty bonus Y


P86.2 million - monetization of leave benefits

P28 million - retirement and gratuity benefits

P9.8 million - contractuals

P54.5 million - deficit in the Hall of Justice maintenance and capital outlay

P12.4 million - additional expense allowance given to judges as pairing judge to a vacant sala

P250,OOO - financial assistance due to calamities and contributions to associations

P250 million - for PHILJA training and seminars

P12 million - welfare and benefits funds; and

P1114.8 million - for the performance bonus authorized by the DBM for the employees, at P5,OOO each.

for casuals and

Senator Enrile underscored that the deficiency in the number of courtrooms is the reason why many people are languishing in jail. He called for a more efficient discharge of justice.

Senator Enrile suggested that if the government opts not to fill these created, funded and organized courts, the savings could then be used to ease the backlogs. Senator Drilon stated that efforts undertaken to rectify the situation had not made any significant improvement due to factors beyond the control of the Supreme Court. For instance, he said that vacancies for presiding judges are not filled due to problems created by the constitutional process requiring the Judicial and Bar Council to nominate at least three candidates for each vacancy. Further, he noted that even with an increased compensation package, there are not many lawyers in the rural areas. On the other hand, he said that the 16% vacancy rate in the Regional Trial Courts resulted from regular retirement or resignation.

For his part, Senator Enrile believed that the matter is basically a question of choosing the priority utilization of savings for the implementation of the principles of justice over the improvement of the economic well-being of a few.

Adverting to successive surveys showing that almost half of Filipinos believe that quite a few judges accept bribes, Senator Enrile stated that in 1999, a Social Weather Stations survey reported that about 62% of Filipinos in general, as well as 70% of those who have direct experience with the court, believe that there is significant corruption in the Judiciary. Moreover, he cited a February 2000 survey which indicated that 65% believe that most lawyers could be bribed while 57% thought the same of judges. He also noted that while a survey conducted during the November 2005 International Conference Showcase on Judicial Reforms revealed that 40% of the respondents agreed that corruption is a significant problem, the evaluation itself might even be underrated considering that the respondents were mostly judges or court officers. He said that such a perception was partly attributable to weaknesses in the institutional framework of the Judiciary owing to the lack of autonomy and efficient means for receiving and resolving complaints of unethical conduct, a weak performance management system and accountability, and poor organization because of over- centralization.

Further, Senator Enrile stated that in Manila, judges’ salaries are low, the appointment process is politicized, and there is an absence of programs to educate the public about the courts and the judicial process. He asked what the Judiciary has done to eradicate corruption and strengthen its performance evaluation system and accountability among judges and justices. Senator Drilon agreed that these matters should be addressed particularly since the faith of the public in the Judiciary would, in turn, affect public faith in the country’s democratic system. However, he said that the Judiciary is working under certain constraints such as the fact the Supreme Court could not discipline corrupt judges unless complaints are filed and evidence are presented against them. He stated that the Judiciary is exerting every effort to overcome this perception of corruption and that in fact, the Supreme Court has instituted a judicial program which, through funding from the World Bank and other foreign assistance, could improve even the actual disciplining process. Nevertheless, he said that he would join Senator Enrile in looking into these issues.

Senator Enrile clarified that he was not criticizing the judicial system; rather, he was including this information into the record for the consideration of Congress and the Judiciary. He then asked the+‘

MONDAY, NOVEMBER 21, 2006 823

Committee to provide comments on the following issues:

1. Weak administrative structures and operating system. This is manifested in delays in the provision of financial, administrative and logistical support services to the various courts. These are symptoms of over-centralization, duplication of oversight knctions and a deficient staffing structure at oversight and court levels, inadequate funding and lack of physical and technological facilities which exacerbate the problem, weaknesses in the key operating systems, insufficient planning and performance management systems and expenditure-oriented budgeting system with limited links to planning and performance management, and a deficient case-management system and limited capacity for managing, procurement, physical assets, and financial flaws. These lead to further delays in decision-making, wasteful use and ineffective application of severely-limited resources; and inability to control operations and management performance.

2. Deficient court technologies and facilities. Most courts are housed in poorly maintained and deficient facilities owned by local government units. Moreover, court facilities are often not conducive for hearing very private and socially-sensitive cases, like rape and domestic violence. Rental and maintenance agreements are often informal, and anecdotal evidence suggests that judges often find themselves in awkward positions when local government officials or their supporters appear before them.

Outside the Supreme Court, the use of computer technologies is limited to nonexistent. Many lower court judges supply their own computers. But these are neither networked nor used for much besides word processing. The lack of integrated information technology systems to support nationwide operations reduces the capacity to plan, monitor and evaluate performance, and take proper control of operations. Improvements in information provided to the public and greater coflaboration with civil society. The public have little understanding of how the courts operate and what their rights are under the law. This has profound implications for access to justice especially by the poor. It also contributes to a situation where the courts are extremely vulnerable to graft and corruption and political pressures.

3.

Senator Drilon agreed with some of the observations, primarily on the issue of centralization as evidence of a weak administrative system. For instance, he noted that under the category of Utilization of Savings for 2005, the Judiciary incurred an actual obligation of P8.3 million only for the transportation of supplies from Manila to the provinces which could certainly be decentralized to the executive judges by making them accountable for the advances of funds for supplies and materials made to them,

However, Senator Drilon stated that while court facilities are not up to western standards, these have greatly improved since the institution of the Halls of Justice program 10 years ago such that decent quarters and courtrooms have been provided to judges. He said that the Philippine justice system would compare favorably with other countries in a similar stage of development.

Senator Enrile expressed hope that the Members would study the issues he raised with respect to the resource materials provided by the World Bank and other reputable institutions, and address them.

SUBMISSION OF THE BUDGET OF THE JUDICIARY

There being no other reservation for interpellation, upon motion of Senator Drilon, there being no objection, the budget of the Judiciary was considered submitted for the Body’s consideration.



It was 12:03 p.m.



CIVIL SERVICE COMMISSION

Senator Drilon presented the budget of the Civil Service Commission. He said that the Committee has recommended an appropriation of P508,078,000, the same level in the NEP and the GAEL&

P

824 MONDAY. NOVEMBER 27.2006

INTERPELLATION OF SENATOR ENRDLE

Senator Enrile noted that the total budget of the Civil Service Commission (CSC), including that of the Career Executive Board, amounts to P540.275 million or 7.11% higher than its 2006 budget of P504.413 million. He said that the PS of the CSC includes commutable allowances and fringe benefits that have the highest increase of 59%, followed hy other benefits of civilian personnel, 43%.

Asked what kind of allowances and benefits were increased in the CSC budget and the reason for the increases, Senator Drilon replied that the increase in allowances and benefits was the result of additional compensation allowed by the President under the executive order that she issued earlier this year.

With regard to MOOE, Senator Enrile stated that traveling expenses has the biggest increase at 19%, followed by training and scholarship, 16%. He asked for a breakdown of professional service and training scholarship expenses. Senator Drilon replied that there was an increase in the scholarship program fund which would allow the CSC to grant scholarships in local universities to 200 career government employees; there was also an increase of P340,OOO or roughly 4% increase for the local travel expenses.

Asked why there is a skewed distribution of government personnel toward the"CR, Regions IV, VI, and III, Senator Drilon replied that each region has a regional office, except that the size of the bureaucracy in each region was determined by factors such as the population of the region being served. Far instance, he said that wbile Region VII is more economically and socially active than Region VI, the former has less government personnel precisely because of the population factor.

On another matter, Senator Enrile read into the record the following:

Given the pressing fiscal constraints, it is clear that the size and cost of civil service, which is continuously increasing - total national government personnel was 950,039 in 2001 - requires review and adjustment as a priority, especially given the potential in the short to medium-term for reallocation of Personal Services Expenditures to Maintenance and Other Operating Expenses. The key to civil service constraints is well-known to policymakers. Establishment control is relatively weak despite efforts in recent years to control recruitment and

impose selective hiring freezes. At present, there is no reliable method to verify information on the number of filled and unfilled positions. The Department of Budget and Management, Civil Service Commission, and the Government Service Insurance System currently maintain their own databases, but these are not integrated with each other. The situation is exacerbated by employment of considerable number of nonpermanent staff such as casuals and contractuals. Flexible items within the overall personal services allocation comprised wages of nonpermanent staff, per diems, fringe benefits and other items. Roughly 18.4% of the 2002 Public Personal Service Allocation across the national budget was deemed flexible. Low-salary levels for executives in the top-pay grades and for professionals in the middle grades compared to the private sector have made it difficult to attract and retain key categories of personnel, including lawyers, auditors, information technology professionals and doctors. There is pressure especially from the government-owned and -controlled corporations and government financial institutions to grant exemptions from the Salary Standardization Law. Allowances are often nontransparent and do not fulfill their objectives.

Capacity building.also needs to be addressed. Fiscal pressures cannot, by themselves, be sufficient for sustainable civil service reform. It is desirable that the constitutional entity tasked with the development and oversight of civil service policy, the Civil Service Commission, be strengthened on a priority basis and that coordination between the Civil Service Commission and the DBM be intensified.

Our people are our country's biggest and most powerful resource. Harnessing our most powerful resource, therefore, is an imperative to gain a competitive advantage in today's advanced global economy.

The Commission performs a critical role hto this global economy given that government is the largest source of employment in the country.

Senator Enrile asked on the major targets of the CSC for 2007 with regard to human resource training; skills and competencies development; and programs and institutional mechanisms prepared or accomplished by the CSC with regard to enhancing human resource competitiveness as well as public sector management. Senator Drilon replied that first, the CSC is set to fully operationalize a human resource information system covering the 1.4 million government personnel. P w

MONDAY. NOVEMBER 27.2006 825

On ghost employees known as “15-30,” Senator Drilon explained that this is the lookout of the head of each agency rather than the CSC. Admittedly, he said, the CSC finds it impossible to catch these “15-30” employees in the system. Senator Enrile agreed. He recalled that when he was assigned for the first time as secretary of the Department of National Defense in February 1970, some politicians came to him informing him of their “15-30” personnel, but he refused to continue their payroll.

Senator Drilon adverted also to a performance management system wherein the CSC assesses how each agency performs vis-&-vis its measurable outputs based on established key result areas. He said that there is a proposal for a wage bill which was submitted by the Executive; but the expenses for it is not part of the GAB.

SUBMISSION OF THE BUDGET OF THE CIVIL SERVICE COMMISSION

There being no other interpellation, upon motion of Senator Drilon, there being no objection, the budget of the Civil Service Commission was considered submitted for the Body’s consideration.



It was 12:26 p.m.





It was 12:27 p.m.


At 12:31 p.m., the session was resumed,

DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT

Senator Drilon presented the budget of the Department of the Interior and Local Government.


At the outset, Senator Enrile observed that the proposed 2007 budget of the Department of the Interior and Local Government (DILG) is P51.142 billion, 12.12% higher than the current budget of P45.614 billion; and it is 4.54% of the P1.126 trillion proposed national budget. He said that the allocation for the Local Government Academy (LGA) was increased by 82%.

Asked on the increase in the LGA’s budget and what trainings it would conduct in 2007, Senator Drilon said that the LGA trains local government executives but because of lack of funds, it did not conduct trainings in the past three years, thus, the reason for the P33.6 million increase for the LGA.

As regards the training given to local executives, Senator Drilon explained that newly elected officials are trained on governance and administration. He also cited the other training programs as follows: Leadership Development, Performance Management, Maximizing Levels of Corporate Governance by Promotion of Public and Private Partnerships and Executive Program Development for Senior DILG Managers. He said that there is also a proposal for an orientation seminar for local executives.

Asked if local council members are also trained on the use of the Rules of Deliberative Assemblies, Senator Drilon replied in the affirmative. He said that the Management Development Training Program, particularly the promotion of public and private partnerships at local level, is for both the executive and legislative officials of the LGUs.

On whether the training includes economizing and utilizing resources for maximum public benefit, Senator Drilon stated that these are covered by the course on fiscal management which includes crafting the budget at the local level. He suggested that the course include the better utilization of the Internal Revenue Allotment because proper resource allocation is not being strictly followed so much so that the LGU has become the biggest employment agency in the locality.

Asked on the percentage of IRA v i s -h i s the national budget, Senator Drilon replied that it is 17%. He observed that the increase in the share of the LGUs compared to the growth rate of the national budget is much bigger, indicating a bias in favor of LGUs. +’


As to how the allocation to LGUs would be utilized, Senator Drilon stated that under the law, the allocation of IRA has limitations - LGUs cannot allocate more than 55% for PS, and must devote 20% to development. However, he admitted that the limitations are not being followed so there is no way to measure the success of the projects.

Senator Enrile posited that under the Constitution, the Chief Executive has supervision but not control over local governments. He said that since local governments are the creation of a law, it may be constitutionally impossible for Congress to impose rigid limitations on the usage of the LGU shares in the national taxes. Senator Drilon stated that Local Government Code sets the 55% limitation and provides the allocation to each class of expense: 20% for development funds; and 5% for calamity funds. e t cetera.

Thereupon, Senator Enrile requested the Committee to make a study from the viewpoint of the Constitution and the efficient utilization of tax money on this issue so that in the next budget deliberation, different limitations and percentages could be set to efficiently improve the usage of funds.

Senator Drilon affirmed that a redirection of the utilization of the IRA by local government units is within the prerogative of Congress but the implementation is within the Executive branch which can therefore impose the limitations prescribed by law. On the other hand, he said that the Commission on Audit submits an annual report on the utilization of IRA.

Senator Enrile clarified that he wanted to fmd out if the COA reports indicate the deficiencies in the utilization of JRA as well as violations of the ratios established by law. Asked what the DILG has done about such findings considering that it exercises supervision over LGUs, Senator Drilon replied that the department calls the attention of the erring LGU and institutes remedies for such transgressions.

Asked whether Congress can withhold further releases to the LGU that fails to comply with the rectification demand of COA, Senator Drilon expressed doubt on the matter as the law provides for automatic releases, which even the Supreme Court has affrmed. He posited that although Congress has the power to amend or repeal laws, the law on automatic releases is based on a constitutional provision, such that

amending the law could raise constitutional questions. But he agreed that the matter deserves review especially where it involves malversation as in the case of ARMM whose previous officials did not remit P250 million in premium payments to the GSIS.

On the allocation for Personal Services, Senator Drilon explained that the 560% increase would cover the salaries, wages and benefits for 2007 of 500 new personnel for the Bureau of Jail Management and Penology, and 200 for the Bureau of Fire Protection whose hiring was approved by the 2006 supplemental budget. As to the allocation for Capital Outlay which showed an increase of P437.3 million for machineries and equipment and P332.6 million for transportation equipment, he enumerated the following expenses:

IT equipment - P 2.6 million Prior obligations - 1.7 million Hospital equipment assistance program - 248 million

For the Bureau of Fire Protection: Self-contained breathing

apparatus with refiller - P U.77 million Fire tnrcks - 50 million

3,000 handcuffs - P 1.8 million Short firearms - 14.7 million 19-perimeter fence - 10.6 million 31 jail buildings - 26.26 million

Local Government

Napolcom - P 3.5 million

9mm pistols - P 176.2 million

255 patrol car - P 277 million 145 200-cc motorcycles - P 26.8 million 1319 communication

12 police stations - P 50 million

of the Philippine Public Safety College

For the BJMP:

IT equipment:

Academy - P750,ooO

P M :

100 patrol troops - P m million

equipment - P M million,

Rehabilitation of the training equipment

Replying to Senator Enrile’s further queries, Senator Drilon said that the BFP has 1,628 fire trucks. He surmised that for localities that have no fire hydrants, tankers carry water from nearby water sources. In this connection, he posited that fire and jail services should be devolved to the local governments which can better address and assess local needs. $w

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MONDAY. NOVEMBER 27.2006 R77

On another matter, asked on the basis of the regional allocation of the DILG budget which shows the largest allocations to NCR, Regions LTI, IV, VI, VI1 and VIE, Senator Drilon revealed that the primary basis is population and consequently, the regional allocation is principally dictated by the peace and order requirements. He stated that the biggest share of the DILG budget goes to the PNP, while the ARMM has its own budget and receives only the PNP component from the DILG budget.

Asked on the role of the DILG in the distribution of the allocation for the National Health Insurance Program with a budget of P3.5 billion for LGUs, Senator Drilon replied that the department has no role in the designation of the enrollees to the program.

Senator Drilon added that P500 million would be used to reimburse the Philippine Charity Sweepstakes Office for the advances it made in the 2004 elections to the PhilHealth; P1.5 million for the reenrollment of the existing enrollees; and P1.5 million for new enrollees in 2007.

With regard to the “anti-illegal gambling” and “no-jueteng” policy, Senator Enrile asked on the present state of illegal gambling, following all the media publicity and the so-called war on illegal gambling. Further, he asked on the DILG’s approach to help curb crime and cormption at the local levels, given the expressed efforts of the national government on these two broad but arguably related concerns. Senator Drilon said that illegal gambling operations were wiped out because of the establishment of the Small Town Lottery (STL), although some guerilla operators still exist. He believed that in certain areas, thejueteng operator is now the STL operator.

To Senator Enrile’s manifestation of support for the legalization ofjueteng, Senator Drilon said that it is now being legalized through the STL, although the STL operator in some rural areas operates jueteng alongside the small town lottery.

As regards crime and corruption at the local government level, Senator Drilon stated that the Philippine National Police and the DILG have implemented anti-corruption programs but they are sometimes perceived as a political tool.

SUBMISSION OF THE BUDGET OF THE DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT AND THE PHILIPPINE NATIONAL POLICE

Upon motion of Senator Drilon, there being no objection, the budget of the Department of the Interior and Local Government, including that of the Philippine National Police, was considered submitted for the Body’s consideration.


Upon motion of Senator Drilon, there being no objection, the Body suspended consideration of the bill.

AFTERNOON AGENDA

Senator Drilon stated that there shall be a roll call in the afternoon’s session to ensure a quorum for the approval of two Bicameral Conference Committee reports. Thereafter, he said that the Body would consider the budgets of the following agencies: Commission on Human Rights, Department of Foreign Affairs, Department of Justice, Department of Tourism and the Department of Transportation and Communications.

ADJOURNMENT OF SESSION

Upon motion of Senator Drilon, there being no objection, the Senate President Pro Tempore Flavier declared the session adjourned until three o’clock in the afternoon.

It was 1:10 p.m.

I hereby certify to the correctness of the foregoing.

Approved on December 4, 2006

.pdf · SESSION NO. 44 Tuesday to Friday and Monday November 2 1 to 24 and 27.2006 CALL TO ORDER At...

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Transcript of .pdf · SESSION NO. 44 Tuesday to Friday and Monday November 2 1 to 24 and 27.2006 CALL TO ORDER At...